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Blackmoney declarants cannot pay tax from undeclared income

New Delhi: The government on Thursday clarified that blackmoney declarants using the one-time compliance window cannot pay tax and penalty from undisclosed income to bring down their liability and such acts will not get any immunity.

The Income Tax Department on Thursday came out with a fourth set of clarifications on the Income Declaration Scheme (IDS) on queries seeking to know if payment under the Scheme can be made out of the undisclosed income without including the same in the income declared, which would bring down the effective rate of tax, surcharge and penalty payable to around 31 per cent from 45 per cent.

The clarification in the form of frequently asked questions (FAQs) stated that there is no intent to “modify or alter the rate of tax, surcharge and penalty payable under the Scheme which have been clearly specified in the Scheme itself”.

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Black money tax payment date extended by a year

The Goan Network
Published Jul 15, 2016, 12:00 AM IST
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New Delhi: Government on Thursday allowed payment of tax and penalty in instalments over an extended period for the black money disclosed under the one-time compliance scheme, debunking certain assumptions that the effective tax rate could work out to be 31 per cent, much lower than mooted. The Income Declaration Scheme (IDS), which gives holders of undeclared wealth a chance to come clean by paying tax, surcharge and penalty of 45 per cent and escape punishment, had earlier…

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