Income Declaration Scheme Rules 2016

Income Declaration Scheme Rules 2016

The Income Declaration Scheme (IDS) 2016 was introduced by the Government of India to allow individuals and entities to declare undisclosed income or assets by paying a certain percentage of tax and penalty. Below is an overview of the rules and key features of the scheme, which you can use without copyright issues:

Income Declaration Scheme Rules 2016

1. Objective

• To provide a one-time opportunity for individuals to declare undisclosed income or assets.
• To bring undisclosed income into the tax net.

2. Eligibility

• The scheme is available to individuals, Hindu Undivided Families (HUFs), companies, firms, and associations of persons.

3. Declaration Period

• The declaration period was open from June 1, 2016, to September 30, 2016.

4. Tax Rates

• A declarant was required to pay a tax of 30% on the declared income.
• An additional penalty of 7.5% and 7.5% of the declared income as a surcharge was applicable.

5. No Questions Asked

• Once the declaration was made and the tax was paid, no further questions would be asked regarding the source of the income declared.
• The declared income would not be subject to scrutiny under the Income Tax Act.

6. Assets and Income Types Covered

• The scheme covered all forms of income including cash, bank deposits, and other assets.
• It also allowed for the declaration of income related to capital gains.

7. Provisions for Undisclosed Foreign Assets

• The scheme allowed the declaration of undisclosed foreign assets, subject to the same tax rates.

8. Filing Procedure

• Declarations were to be made in a prescribed form (Form 1).
• The form required details of the income and assets being declared.

9. Amnesty from Legal Prosecution

• Declaring under the scheme granted immunity from prosecution for tax evasion related to the declared income.

10. Limitations

• The scheme was a one-time opportunity and was not extended beyond the deadline.
• It did not cover income declared in earlier assessment years.