Govt. of India has come out with a new Income Declaration Scheme, 2016 which can be made use by all individuals, HUF, companies, firms, associations of persons etc. Under this Scheme declaration can be made in respect of undisclosed income and investments in any asset representing undisclosed income relating to any financial year up to 2015-16.
This is not an immunity scheme as it has 7.5% penalty. The amounts payable by the declarant will be taxed at 30% on undisclosed income, 7.5% surcharge and 7.5% penalty. Total money paid will be 45%.
The scheme is effective from 1st June and declaration may be filed up to 30th September. As on date, tax surcharge and penalty has to be paid by 30th November, though the Govt. is thinking of extending this time and making payments in three instalments with easy fund flow.