As per the Income Declaration Scheme (IDS), September 30 is the last day to declare unaccounted income, or ‘black money’ and if you happen to be one of those who fall in that bracket, either rush or brace yourself to be dealt with an iron hand.
It is believed that tax defaulters in huge numbers will declare their unaccounted wealth on the last day of the 4-month compliance window and the government has directed the Income Tax offices to remain open till 12 midnight today.
Under this scheme, strict action, including imprisonment, will be taken against those black money holders who do not purposely disclose their unaccounted wealth by September 30.
The Income Tax department has already identified 90 lakh high value transactions without PAN. As part of the scrutiny, the department will initially issue 7 lakh letters to those who have indulged in such transactions seeking their details.
According to the IDS, those who disclose their income after September 30 will have to pay a penalty of 300 per cent on the tax levied on the undisclosed income.
Under the Income Declaration Scheme (IDS) which opened on June 1, black money holders can come clean by declaring the assets by September 30 and paying tax and penalty of 45 per thereafter. Those who fail to take advantage of the scheme will have to face stringent actions, including imprisonment.
In July, the government had launched an ‘EMI scheme’ over an extended period for the payment of tax and penalty for the black money disclosed under the one-time compliance scheme.
Under this scheme, the government has allowed the tax defaulters to pay the tax and penalty in three installments under the revised time schedule.
The first instalment of 25 per cent of the total tax, surcharge and penalty due will have to be paid by November 30, 2016, followed by a second tranche of an equivalent amount by March 31, 2017. The remaining 50 per cent will have to be paid by September 30, 2017.