Monday, August 29, 2016

Important features of the scheme

1. The Finance Minister Mr. Arun Jaitely assured in his budget speech that there will be no scrutiny or enquiry regarding income declared under this Scheme under the Income-tax Act or the Wealth-tax Act. This scheme puts the entire onus on the declarant to ensure that he/she doesn’t come under the prohibited category; for example, if the assessee declared a particular income of an A.Y. the department may enquire any Income other than a particular declared income.

2. Same like BM act and VDIS scheme, this scheme states that the information contained in the declaration shall not be shared within the Income-tax department for any investigation in respect of a valid declaration or any other tax or law enforcement agency.

3. The Scheme provides most attractive feature – immunity from the Benami Transaction (Prohibition) Act, 1988. This is subject to the asset existing in the name of a benamidar is transferred to the declarant (being the person who provides the consideration for such assets) latest by 30 September 2017. The Capital gain tax would not be levied on the Benamidar.

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