Latest News on Income declaration Scheme 2016

In this blog we will talk about very important and popular topics  Income declaration Scheme 2016 . IDS is basically amnesty scheme in the income tax by modi government. under this scheme assessee can disclosed all his undisclosed scheme to get the  relaxation from the department.

IDS are a scheme of the modi government, in that an Assessee can disclose his undisclosed income of past years. On undisclosed income Assessee has to pay tax at the rate of 45%.

Transaction covered in IDS

Majorly four transactions covered in that scheme-

Capital gain on share –

Capital gain earned on the penny stock

Benami property –

Property purchased and not shown in income tax return

Unsecured loan

Unsecured loan shown in books to hide the income tax in the past

Fake  entry 

Any person has taken the entry and not disclosed in income tax return.

Valuation of Undisclosed income in IDS 2016 – 

Fair value of the Undisclosed income will be calculated in the following manner –

Capital gain on penny stock –

In this for calculation of capital gain fair value will be considered as Market price as on 31^st May 2016.

Capital gain on property –

In this cost of the property with indexation will be considered as fair value of the property.

For Gold –

Certification to be taken for the valuation of the gold

How to declare the income in IDS 2016-

There are two ways online and offline.

In on line mode this is the steps to declare the income-

File the 1 form – In this simply disclosed the income in a particular head.

Department will generate the 2 form – In that it will show the tax liability arises by the assesse.

File the 3 Form – Pay the tax and file the 3 form to the department

Four Form – This will be generated by the department to give you the certificate.

Installment payment in IDS scheme 2016 –

Existing Appeal Pending in the Income tax –

The scheme is available only if appeals pending with the Commissioner of Income Tax and CIT has not passed the order. It is not applicable if the Commissioner  has passed the order or case pending in ITO.

In this no benefit is given in the tax and interest only some penalty benefits is given. The benefit under this scheme is to pay 25% of the minimum penalty only up to the date of assessment and not up to the date on which the appeal is decided and given effect.

Benefits of the IDS scheme to the assesse

Under this schemes government will not share the data to the sales tax or service tax departments.Also under this scheme if  any person declare the information will not to the income tax department as well. Also if in future any raid will be conducted they can show the IDS Certificate of declaration of income.

By IDS Scheme 2016 modi government is reducing the black money in the country. Also this is an like Ganga river for the black money holder under this scheme they can clear all the dues.