Kolkata, July 4 (IANS) The income tax department has been receiving a “good response” under its Income Declaration Scheme 2016 in the West Bengal and Sikkim region, an official said on Monday.
The scheme which already commenced from June 1 will run till September 30. Declaration could be made till September 30 while tax payments could be made by November 30.
“We have been interacting with taxpayers and have got a good response from them. We have noticed a change in contour from why to disclose to how to disclose,” said A.A. Shankar, Principal Commissioner of Income Tax, West Bengal and Sikkim).
The scheme, which is not a amnesty, offers a one-time opportunity to persons who have not paid full taxes in the past, to declare their undisclosed incomes assets voluntarily, he said, adding that there will be no enquiry, scrutiny and prosecution in future against declarants in respect of income declared under the scheme, he added.
Shankar also said the persons possessing undeclared assets or undisclosed homes and not availing of this scheme within September 30, will face the full blast of the new law which is much harsher.
The person making a declaration under the scheme would be liable to pay tax at the rate of 30 per cent of the value of such undisclosed income as increased by surcharge at the rate of 25 percent of such tax.
In addition, the person would be liable to pay penalty at the rate of 25 per cent of such tax.
The declarant, therefore, would be liable to pay a total of 45 percent of the value of the disclosed income declared by him. The 45 percent tax rate also includes Krishi Kalyan cess, officials said.