2016-17 Union Budget Monday February 29,2016 - One-Time Amnesty Scheme to Resident Indians to disclose undisclosed income

Undisclosed income declaration allowed by paying 45% tax

Finance Minister Arun Jaitley offered residents with undisclosed income a one-time amnesty from prosecution as pressure mounted on Prime Minister Narendra Modi to deliver on his poll promise of unearthing black money.

Government of India plan to open the window under this Income Disclosure Scheme from 1st June to 30th September, 2016 with an option to pay amount due within two months of declaration.

Regarding income declared in these declarations, there will be no scrutiny or enquiry under the Income Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed subject to certain conditions.

The surcharge levied at 7.5% of undisclosed income will be called ‘Krishi Kalyan surcharge’ which will be used for agriculture and rural economy.