The Central Board of direct Taxes (CBDT) today issued fifth set of Frequently Asked Questions (FAQs) clarifying the different aspect of Income Declaration Scheme.
The Income Declaration Scheme, 2016 provided an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets.
The Board has issued four sets of clarifications in the form of FAQs. The fifth set of Frequently Asked Questions (FAQs) providing clarification on various issues are in the process of being issued.
The fifth set of FAQs issued by the CBDT and this time a total number of 12 queries have been answered.
The Circular clarified that, payment of amount payable under the Income declaration Scheme can be made in cash to the Banks. Reserve Bank of India (RBI) has been requested to issue instructions to banks to allow payment of tax under the Scheme in cash. RBI has also been requested to instruct the banks to allow deposit of cash over the counter in accordance with its existing master circular No. DBOD No.Leg.BC.21/09.07.006/2014-15 dated 01.07.2014.
In the eighth question, It is clarified that no adverse action shall be taken against the declarant by FIU or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the Scheme.
In case of a trust or institution registered under section 12A of the Income-tax Act files declaration under the Scheme, the registration under section 12A of the Income-tax Act shall not be cancelled solely on the basis of the information furnished in the declaration filed under the Scheme.
In another question asked that, where the return of income has not been filed for an assessment year but the time limit for filing the same has not expired under section 139 of the Income-tax Act, whether the declaration under the Scheme can be filed for such assessment year?
The department answered that, The declaration for the assessment year for which the return of income has not been filed can be made under the Scheme even though the time limit for filing the return under section 139 of the Income-tax Act has not expired.
The FAQs also deals with matters relating to valuation report of assets, fair market value, value of Immovable property, etc.
Read the full text of the circular below.
