Money plays major part in every day activities of people and society. Money is needed to purchase services or goods for living purpose . To earn money people start doing job or business . From the first day of earning ‘ Income management’ is important for all to plan their future.
As a part of society everyone has citizenship of specific country and specific government laws are liable to everyone too. Every country has income related laws and citizens of that country are supposed to obey these laws. Example – In India INCOME TAX ACT -1961 is present.
As per this law the annual income for every individual or firm or company needs to be declared and proper tax is to be paid to the government . Usually when there is huge income and people are hiding this and showing less income will be inquired and proper action will be taken if that is true. This income declaration scheme 2016 is introduced to protect you from unwanted trouble and income tax raids.
What Income Declaration Scheme 2016 says ?
If any such undeclared income is with you then you need to pay tax of 30 percent from the total income they have. There will some surcharges in a range of seven to eight percent of the total income that is disclosed. If you declare any income like that then you will be penalized with around 7.5 percent of the income that is undisclosed. So, about 45 percent of the total income will be paid by the person who declares about the income that is undisclosed.
If we declare our income and pay the tax properly then we will be having a lot more benefits. These benefits include taxes on your wealth and no more inquiries about your income by the income tax department. You will be saved from the prosecution and the benami when you have transferred the funds to the real owner.
If notWhat if you don’t disclose your income ?
Government has all the rights to find the income details and takes severe action on this. Once caught – according to the income declaration scheme 2016 you will be liable to pay all the interest and the penal charges.
The scheme is effective from June 1st 2016 and the deadline for declaring all your income by the end of September that is by 30th September 2016. If any undisclosed income, then you need to pay your interests and penalties by the end of November that is by November 30th 2016.
The person will only be ineligible from declaration for those assessment years for which a notice under section 142(1)/143(2)/148/153A/153C is issued and the proceeding is pending before the Assessing Officer.The declaration will be void if there is any misrepresentation or any suppression of the facts about your income for the respective year. As well as if there is any search or surveys are conducted regarding the income of any individual or a firm, then the scheme does not apply.
The income sought to be declared as chargeable under the 2015 Black Money act.The detainees of COFEPOSA and persons that are notified under some special court acts and any cases of prosecution under the NDPS act or even prevention of corruption act and some offenses under the Indian penal code .
So Why to wait ? Fill up forms….
The forms to be filled are form of declaration, declaration acknowledgement, and payment intimation and declaration certificate.The market rate of all the undisclosed income in the form of properties will be evaluated according to the market price and then you need to pay that interest and penalty.