INCOME DECLARATION SCHEME 2016

Recommended Steps

1. Obtain Expert Legal/Tax Guidance: Since IDS 2016 was a specific amnesty scheme, the documentation (Form 1, Form 2, and the Acknowledgement in Form 3) is critical. You should consult with the Chartered Accountant (CA) or tax consultant who handled the original declaration. They will understand the exact legal position taken during the filing.

2. Verify Documentation: Ensure that the asset was explicitly included in the disclosure made under IDS 2016. If it was, the declarant is granted immunity from the Income Tax Act for that asset.

3. Formal Representation to the KVP Officer:

   • Submit a formal letter to the KVP issuing office/post office, enclosing a copy of the Form 3 (Certificate of Declaration) issued by the Principal Commissioner/Commissioner of Income Tax.

   • Highlight that under the provisions of the Finance Act 2016 (which governed the IDS), the certificate serves as conclusive evidence regarding the disclosure.

4. Escalation to the Assessing Officer (AO): If the postal/KVP authorities continue to refuse, approach the jurisdictional Assessing Officer who processed the IDS declaration. They can issue a clarification or a formal communication to the relevant authority (in this case, the KVP/Department of Posts) to facilitate the release of funds.

5. Legal Recourse: If the matter remains unresolved after departmental communication, you may need to file a representation with the Senior Superintendent of Post Offices or, in extreme cases, seek a writ petition or legal notice to compel the authorities to recognize the tax immunity granted under the scheme.