Do you have any undisclosed income of previous years? Whatever is the reason, in case you have any kind of undisclosed income of previous years then you can use this Income Declaration Scheme 2016. Is there any benefit of declaring the previous undisclosed income?
I think you know the answer better than me as undisclosed income is like hiding something which is not legally correct. As a responsible citizen of India, one need to pay tax on our total income. In such a scenario if some one don’t share the income then s/he can be charged for breaking rules. But with this new Income Declaration Scheme 2016, you will get another chance to declare your undisclosed income and get 100% mental satisfaction.
What is Income Declaration Scheme 2016?
If you are aware about this term, then you may have heard about such schemes previously also. Actually this is a special window decided by It department of India where they are giving opportunity to people to declare the undisclosed income and pay the tax or penalty to make their profile clear.
How much tax one need to pay?
You have to pay some extra tax as per the new Income Declaration Scheme 2016.
- Tax Payable: 30% of undisclosed income
- Surcharge Payable (Krishi kalyan Cess): 25% of tax payable (i.e. 7.5% of undisclosed income)
- Penalty Payable: 25% of tax payable (i.e. 7.5% of undisclosed income)
That means total tax payable is 45% of undisclosed income. You might be thinking a 50% amount you are going to pay upfront may not be a good idea, but remember that IT department has very strict these days and they are sending notifications to all such tax defaulters and the punishment rules are also getting very strict. So, just think 10 times, whether this 45% tax is more or a 100% mental satisfaction is better.
When is the last date for Income Declaration Scheme 2016
The Center has declared 30 September as the last date for making a declaration and 30 November as the date by which the tax, surcharge and penalty may be paid.
How To Declare Your Taxes Using New Income Declaration Scheme 2016
There is a detailed user manual document available where you will be able to find every single details about this scheme and how to use the same to disclose your previous years income. You can refer the link here and proceed further.
Do share any of your experience or feedback about this scheme by writing a simple comment below.