RWAs roped in for income declaration scheme

NOIDA: Officials from the income tax department held a workshop with Noida RWA federation on Saturday and apprised residents of the ongoing (started from June 1 to go till Sept 30) Income Tax Declaration Scheme, 2016. Given that out of 10 lakh pan card holders in Noida, only 2 lakh citizens paid their taxes for the 2015-16 financial year, as per commissioner Bharat Bhushan Garg income tax department, the workshop was part of the all-India drive by the department to reach maximum citizens for tax collections.

According to Garg, the Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Act, 2016 provides an opportunity to persons who have not paid full taxes in the past to declare their income and become law-abiding taxpayers. This is one time opportunity. “There are many paying guest accommodations, property on rent as well as income from advertorials and other businesses in Noida. This scheme provides for all undisclosed income declaration since past 20 years with no questions asked,” Garg told TOI adding that a person can download the declaration form from the income tax website incometaxindia.gov.in and do the needful.

While filing undisclosed income has started from June 1, it will continue till Sept 30, 2016. A certificate of tax deducted would be issued within 15 days of declaring undisclosed income for taxation purposes, said Garg.

Earlier on July 4, Garg, along with joint commissioner, income tax Sudha Singh and senior officials of the department had held a meeting with office-bearers of Federation of Noida Residents Welfare Associations (FONRWA), and had explained the salient features and relevant details regarding the Income Declaration Scheme, 2016. “It was decided then, that the RWA federation will hold the said workshop so that residents get to learn about the Income Declaration Scheme, 2016, so as to clear their pending taxes,” said N P Singh, president FONRWA.

The RWA federation plans to spread the information gathered from Saturday’s meet with income tax commissioner Garg, through respective sector RWAs to residents of their sectors and also assist them in filing their taxations, said Singh.

The Scheme, that incorporates the provisions of section 138 of the Income-tax Act relating to disclosure of information in respect of assesses, entails that the said information will be confidential as in the case of return of income filed by assesse.

Also, it’s not mandatory to file the valuation report of the undisclosed income represented in the form of investment in asset along with the declaration.

However, the non-payment of total taxes, surcharge and penalty in time or declaration by misrepresentation or suppression of facts will render the declaration void.

For Circular No. 16 and 17 dated May 20, 2016 and Circular No. 19 dated May 25, 2016 (Explanatory Notes and Clarifications on Income Declaration Scheme 2016), one can visit the website www incometaxindia.gov.in

“We want to reach as many people as possible so that they utilise this opportunity to clear their taxes and no better than RWAs to help us achieve the same,” said Garg.

The salient features of Income Declaration Scheme, 2016 are as follows:

· Scheme to apply to undisclosed income whether it’s in the form of assets or otherwise, pertaining to F-Y 2015-16 or earlier years.

· In respect of undisclosed income in the form of assets, Fair Market Value of the asset as on June 1, 2016 will be deemed to be the undisclosed income.

· The person making a declaration under the Scheme would be liable to pay tax at the rate of 30 percent of the value of such undisclosed income as increased by surcharge at the rate of 25 percent of such tax. In addition, he would also be liable to pay penalty at the rate of 25 percent of such tax. Therefore, the declarant would be liable to pay a total of 45 percent of the value of the undisclosed income declared by him.

Immunity:

. Assets declared will be exempt from Wealth-tax.

· No scrutiny/enquiry under Income-tax Act/Wealth-tax Act in respect of such declarations.

· Immunity from prosecution under Income-tax Act/Wealth-tax Act.

· Immunity from Benami Transactions (Prohibition) Act, 1988 subject to certain conditions.

Compliance window:

· Declaration to be made from June 1, 2016 to September 30, 2016.

· Tax, surcharge and penalty to be paid by November 30, 2016.

Mode of making declaration:

· To be filed online or in print form to jurisdictional Pr. Commissioner/Commissioner of Income Tax Clarificatory notes on the Scheme.

· Declarant will be liable for Capital gains on sale of such undisclosed assets in future.

· Person will be ineligible for the scheme for those Assessment Years for which a notice under section 142(1)/143(2)/148/153A/153C is issued and served on or before May 31, 2016 and the proceeding is pending before the Assessing Officer.

· The person is also not eligible to make a declaration under the Scheme if a search has been initiated and the time for issuance of notice under section 153A has not expired, even if such notice for the relevant Assessment Year has not been issued.

· The declarant is not entitled to re-open any assessment or reassessment made under the Income-tax Act. However, he can declare other undisclosed income for the said Assessment Year which has not been assessed under the Income-tax Act.

· In case of survey operation the person is barred from making a declaration under the Scheme in respect of the Assessment Year in which the survey was conducted and time limit for issuance of notice of assessment has not expired.

· Where a search/ survey operation was conducted and the assessment has been completed but certain income was neither disclosed nor assessed, such unassessed income can be declared.