ABHISHEK JAIN AND DHEERAJ BAFNA
INCOME DECLARATION SCHEME, 2016
Is 45% too much to pay??
Here is how you can reduce it…..
Is 45% tax rate is higher?????
Here is the opportunity, the Government had earlier provided time for
payment of taxes upto 30 November 2016.
Now, the government has allowed payment of dues in three
installments by 30 September 2017.
However, the declaration is open only till 30 September 2016.
Is 45% too much to pay??
The first installment of 25% of the total tax, surcharge and penalty due
will have to be paid by 30 November 2016
followed by a second tranche of an equivalent amount by 31 March
The remaining 50% will have to be paid by 30 September 2017, a
Finance Ministry statement said.
Due date of tax payment in now extended!!!!!
This gives the declarant an opportunity to declare the income today and
such white money can be immediately invested in the business/deposits.
The declarant can earn income out of such investments and pay IDS
scheme tax through installments upto 30 Sep 2017.
Do you know what could this mean….???
You may end up paying simply 30%-35% of taxes…
Let me give you an example in the next slide…
Isn’t this a Golden Opportunity????
Declare income and earn out of the same…..
Effective tax rate could become 30% to 35%
1. Post 30 September 2016, IDS Scheme allows IT officers to go after
all tax evaders for undisclosed assets acquired well before 6 years.
This is against the current law where assets acquired before 6 years
can not be questioned which means such cases can not be reopened
for any assessment.
This can be challenged in future. But at this point of time there is no
clarity on this.
2. Half declaration would be dangerous: It has been provided that
where a declaration under the scheme has been made by
misrepresentation or suppression of facts (half disclosure), such
declaration shall be treated as void.
2 points worth noting!!!!!
The IDS scheme announced by the government is open till 30th
It is an important opportunity and the government has committed
to not to seek any details or source of money earned and assets
created once disclosed in terms of the scheme.
Let’s disclose the undisclosed income and come clean
Dheeraj M Bafna
Partner@ M/S. ABHISHEK JAIN AND DHEERAJ BAFNA
F-11, Pamadi Tower, No-4, 1st Main, Gandhinagar, Bangalore - 560009
Email : firstname.lastname@example.org |Mobile : +91 97394 59025 | Landline : 080 41669821
Disclose the undisclosed income and defuse the IT BOMB