Tax Department Not To Take Any Action On Cash Deposits Made After Declaring Income Under IDS
Posted on September 30 2020
The government has said no detrimental action will be taken by the Financial Intelligence Unit or the income-tax department completely on the basis of the information regarding the cash deposit made subsequent to the declaration under the black money scheme.
Credit for the unclaimed tax deducted at source made on the declared income will be allowed and no capital gains tax or TDS (tax deducted at source) will be levied on the transfer of the declared benami property from benamidar to the declarant without any consideration.
To convince people about the Income Declaration Scheme, 2016, which will be closing by the 30th of September, the Central Board of Direct Taxes has come out with the 6th set of clarifications in the form of frequently asked questions.
It has again convinced those wanting to declare the unaccounted assets or the income that information in the respect of a valid declaration will be confidential and will not be shared with any law enforcement agency nor will be enquired into by the income-tax department itself.
The scheme provides an opportunity to persons who have not paid the entire taxes in the past to come forward and declare their undisclosed income and assets. The scheme came into effect on the 1st June, 2016 and is open for the declarations up to 30th September, 2016.
A total tax of 45% including the surcharge and the penalty has to be paid.
The amount payable under the scheme can be deposited in the way of instalments. As per the latest clarification, the assets declared under the scheme are to be valued at the cost of property or at the fair market price as on 1st June, 2016 as determined by the registered valuer, whichever is higher.
Therefore, an option for the valuation of the registered immovable property on the basis of stamp duty value of property adjusted with the Cost Inflation Index has also been provided.
The amount of misleading liabilities recorded in the audited balance sheet and not linked to the attainment of an asset can be disclosed under the scheme as such. The period of holding of the declared registered the immovable assets will be taken on the basis of the actual date of the registration.
The valuation report attained by the declarant from a registered valuer will not be questioned by the income tax department. Therefore, the valuer's accountability remains.
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