(Domestic) Income Declaration Scheme 2016: Doors To Open Shortly

Following the voluntary disclosure window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Foreign Black Money Law), the Government of India had announced the Income Declaration Scheme, 2016 (Scheme) in the Finance Bill, 2016. The Scheme was announced with the intention of attracting taxpayers to disclose their unaccounted domestic / Indian income and assets.

As per the Press Release issued by the Ministry of Finance, Government of India on 14 May 2016, the Scheme will remain open for four months from 1 June 2016 to 30 September 2016.

Broad mechanics of the Scheme

The Scheme applies to undisclosed / unaccounted domestic income and assets which were earned in any year prior to the financial year (FY) 2016-17 (i.e. FY 2015-16 and earlier years). The Scheme does not apply to any undisclosed foreign income and assets to which the Foreign Black Money Law applies.