1. Who can disclose income & assets under The Income Declaration Scheme 2016 (TIDS)?
Citizens who have not declared their income wholly or partially and paid their taxes in full in the past can come forward and declare their undisclosed income/assets. As a result, they have to pay the corresponding taxes, surcharges, and penalties as applicable. To be precise, all citizens including individuals, HUFs, companies, firms, and association of people can disclose income and assets under The Income Declaration Scheme, 2016 (TIDS).
2. Income tax penalty rate
You have to pay a penalty as per the rates given below:
A total of 45% of the undisclosed income is required to be paid to the government.
3. What forms should you deal with?
4. Immunity for the income declarant
5. Mode of declaring such income
6. Example scenario
Consider that Mr V has assisted Mr P for purchasing a residential plot and earned a commission of Rs.3 lakh. However, Mr V has not disclosed this income as the money was received in cash (there is no proof for receiving the money). This incident has happened in 2016. However, his wife wants him to declare this income and be honest with the government.
She hears about The Income Declaration Scheme, 2016 and persuades Mr V to declare this income so that they can use the money to incubate a startup legally. Mr V agrees to disclose this income and files a declaration online on the income tax india website.