The Income Tax Department has warned of stringent legal action against those who fail to declare their assets by September 30 under the Income Declaration Scheme (IDS).
“Stern actions would be taken and penalty would be imposed on the people, who do not declare their deposits and assets by September 30 under the IDS,” LC Joshi Ranee, Principal Commissioner of Income Tax (PCIT), said here on Friday.
Since the announcement of the IDS in June this year, a good number of people across the country have submitted their papers declaring their deposits and assets.
“But, a large number of people are yet to pay heed to the government's appeal,” he said.
Ranee, accompanied by Joint Commissioner of Income Tax (JCIT) Syamal Datta, said that penalty against the tax evaders or those people do not declare their deposits and assets under the IDS would be 100 per cent to 300 per cent, besides jail terms ranging from three months to seven years, depending upon the severity of the fault and laxity.
The PCIT said that the scheme (IDS), which was announced by the government in June with an aim to bring out black money from the domestic economy, would not be extended beyond September 30.
The government had also extended the deadline for payment of tax dues and penalty under the IDS and allowed declarants to pay the amount in three instalments by September 30 next year.
"The first instalment of 25 per cent under the IDS 2016 would have to be paid by November 2016, followed by another 25 per cent by March 31 and the remaining by September 30 next year," the official added.
Ranee said that for the convenience of tax payers, the Income Tax Department would keep its offices open all over the country until the midnight of September 30.
Citing an example of the ratio of the tax payers and evaders, JCIT Syamal Datta said that in Tripura, the approximate number of tax payers is 43,000, whereas the actual number is around one lakh.
"However, due to our massive campaign and declaration of the IDS, a large number of people are coming forward to submit their tax returns, and declaring their deposits and assets," Datta added.