IDS-2016

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This discussion addresses whether funds received from the RBI under the Income Declaration Scheme (IDS) 2016, after a 5-year blocked period, are considered exempted income for Income Tax Return (ITR) reporting. The general consensus is that if the income was properly declared and taxes paid under IDS 2016, it should not be added to your income for assessment purposes and therefore does not need to be reported. The funds can be shown as a bank balance on the asset side of the balance sheet and as part of capital or reserves and surplus on the liabilities side.

LIMPA CHAKRABORTY

LIMPA CHAKRABORTY (Querist)
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04 August 2021 After 5 years blocked period (16/03/2016 to 15/03/2021) received Rs. 1976100/- from the RBI. Is the amounts received exempted income for reporting purpose in ITR? If not, what type of income is? How to show the amounts in balance sheet in ITR? Is it current (deposit) assets in balance sheet of ITR? Kindly send your valuable reply. Regards, Limpa Chakraborty

LIMPA CHAKRABORTY

LIMPA CHAKRABORTY (Querist)
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04 August 2021 Kindly help me by way of sending your valuable opinion. Regards, Limpa Chakraborty

Deepa B

Deepa B (Expert)
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04 August 2021 It's advisable to take a professional opinion. Because with the brief description, one will not know the intricacies of the case narrated. It might lead to oversight of some vital information. But on a general note below is my reply:
The income, disclosed appropriately under Income declaration scheme 2016 along with proper payment of notified tax and penalty, will not be added to your income in any assessment year. Hence there is no need of reporting it, I believe. In your balance sheet it can be incorporated with the bank balance(Asset side) if it's lying in your bank account as it's a free fund available for further utilization without any restrictions. And on the liabilities side it can be shown as part of capital (in case of individual) else as part of reserves and surplus.

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