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Business News/ Politics / Policy/  No amnesty for income from corrupt practices, says government
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No amnesty for income from corrupt practices, says government

Income from corrupt practices cannot be declared under the domestic black money window that is set to open on 1 June

Finance minister Arun Jaitley, in this year’s budget, had announced the scheme to allow domestic taxpayers to declare their undisclosed income or assets by paying tax at 30%, and surcharge and penalty of 7.5% each—totalling 45% of the undisclosed income. Photo: Abhijit Bhatlekar/MintPremium
Finance minister Arun Jaitley, in this year’s budget, had announced the scheme to allow domestic taxpayers to declare their undisclosed income or assets by paying tax at 30%, and surcharge and penalty of 7.5% each—totalling 45% of the undisclosed income. Photo: Abhijit Bhatlekar/Mint

New Delhi: Income from corrupt practices cannot be declared under the domestic black money window that is set to open on 1 June. Additionally, the acquisition of any property where a part payment has been made through black money will be proportionately taxed if declared under the window.

These are part of the clarifications that the government has provided for its income declaration scheme announced in this year’s budget.

Finance minister Arun Jaitley, in this year’s budget, had announced the scheme to allow domestic taxpayers to declare their undisclosed income or assets by paying tax at 30%, and surcharge and penalty of 7.5% each—totalling 45% of the undisclosed income.

Subsequently, the government notified a four-month window beginning 1 June to allow taxpayers to declare their undisclosed income and escape prosecution.

With just 10 days left for the start of the income declaration scheme, the tax department on Friday sought to clarify some pressing issues raised by taxpayers and accountants about the window.

In its answer to some frequently asked questions, the tax department has clarified that undisclosed income cannot be declared if it has been assessed to tax and the case is pending before an appellate authority.

Similarly, if the taxpayer is facing search and seizure operations in a particular assessment year, he cannot declare his undisclosed income for that particular year.

Through an example, the department has also clarified the way the tax will be computed with respect to a declaration of an asset which has been partly purchased with accounted money and partly with unaccounted funds.

The fair market value of the asset will be calculated proportionate to the black money component.

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Published: 21 May 2016, 12:23 AM IST
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