How to do e-filing for Income Declaration Scheme 2016 for undisclosed income

The Department of Revenue Central Board of Direct Taxes, Ministry of Finance, Govt. of India has made provisions to give an opportunity to all persons who have not declared their income correctly in earlier years to come forward and declare such undisclosed income. Just as the information you give in the case of IT returns is kept confidential, so also with the declaration made under this Income Declaration Scheme 2016 (IDS-2016).


[Image source: www.incometaxindia.gov.in]

Scheme features

1. You will be ineligible from declaration under this scheme for those assessment years for which a notice under section 142(1)/143(2)/148/153A/153C was issued and the proceeding is as yet pending before the Assessing Officer. However, you can declare undisclosed income for other years for which no notice under the afore-mentioned sections was issued. In case the notice has been issued under the afore-mentioned Act & served on or before 31st May, 2016, then you will have to file a declaration regarding receipt of any such notice in the requisite form, which is Form-1.


2. The Fair Market Value of the asset as on 1st June 2016 will be deemed to be the undisclosed income.


3. Tax, surcharge and penalty are payable at 45% of the income declared under this scheme. Important note: Non-payment of these within the stipulated time will make the declaration void.


4. It is not required that you should file a valuation report of the undisclosed income represented in the form of investment in assets along with the declaration under this scheme.


5. The assets declared under this scheme will be exempt from Wealth Tax.


6. There will be no scrutiny or enquiries under the Income Tax Act/Wealth Tax Act in respect of such declarations under the scheme.


7. You will get immunity from prosecution under the Income Tax Act/Wealth Tax Act.


8. You will get immunity from Benami Transactions (Prohibition) Act, 1988, subject to certain conditions.

Under what the scheme is not applicable

1. If a search or survey operation was organized and the assessment was completed, but certain income was neither disclosed nor assessed, then this unassessed income cannot be declared under this scheme.


2. If you have earned the undisclosed income through earnings acquired by corrupt means, then the income generated thus cannot be declared under this scheme.

Requirements

How to make declaration

1. Online mode: These are the steps for e-filing the IDS-2016 form at the official website.
   
2. Go to the e-filing website (refer to the links given just above under requirements).


• Then go to the tab 'e-File' and upload the form for Income Disclosure - Form 1 (Income Declaration Scheme, 2016).


• Next, at the upload page, attach a valid XML file generated using the JAVA utility of Form for Income Disclosure - Form 1.


• At the next step, the Valuation Report, if any, can be attached (note that this is not compulsory). Now upload the signature file generated using DSC Management Utility for the uploaded XML file. For further details on generating Signature file refer to this pdf guidelines manual. Then go through the instructions for uploading XML.


• Click on "Submit" button and you're done.


• Once you have uploaded the Form for Income Disclosure - Form 1, you will see 'success' message on the screen. A confirmation mail will also be sent to the registered email id.


• At any time you can check the details of the uploaded form. Simply log-in and check under 'View Form for Income Disclosure - Form 1'. For future reference, you can click on the "Receipt No." to see the details of Form for Income Disclosure - Form 1 which you had uploaded.


3. You can submit it in print format to the jurisdictional Pr. Commissioner/Commissioner of Income Tax.

Schedule of dates

1. Declaration to be made from: 1st June 2016 to 30th September 2016.


2. Tax, surcharge and penalty to be paid by: 30th November 2016.

Contact information