09 August 2016
In case of an assessee who has not filed his return and now wishes to declare his income under IDS, will he get the benefit of exemption limit? For example, if his total income for that year is Rs 5 lakh, then should he declare Rs 3 lakh as undeclared income and pay tax on Rs 3 lakh or should he disclose Rs 5 lakh as undeclared income and pay tax on that amount. Income Declaration Scheme 2016 Section 183 states that," a declaration of any income chargeable to tax under the Income Tax Act". This means that the declaration should be made only of the amount which is above the exemption limit. Please share your views.
09 August 2016
No, the benefit of exemption limit is not available in IDS. The income declared under IDS is charged and taxed under completely different section and there is no benefit available of exemption limit or even of sections like 80c , etc...
09 August 2016
Thanks Ms. Ruchi. The income to be declared under the IDS is the income which was chargeable to tax. Hence, if a person had a total income of Rs 5 lakh and Rs 2 lakh was the exemption limit so the income chargeable to tax would only be Rs 3lakh. There is no deduction allowed for any expenditure or allowance against the income. But that is different from the exemption limit. Please share your views.
10 August 2016
'Income chargeable to tax' has different meanings for different sections. When you file return under normal provisions of the Act then the exemption limit is applicable. But IDS is different. It is a special provision and since it is not specified that the exemption limit is applicable on this section also , we cannot take the benefit.
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