'Income Disclosure Scheme' a big hit among taxpayers

The one-time 'Income Disclosure scheme' of the Income Tax department, which closes this month has generated "a good interest" and been well received by the taxpayers as per the reports of the IT department.

Under the IDS, launched by the government on June 1, black money holders can come clean by paying tax, penalty and cess totaling 45 per cent of the undisclosed income. 

The last few days remaining for filing of declarations are expected to give good results," the Finance Ministry said in a statement. The four-month long disclosure window closes on September 30. 

"The confidential handling of declarations made under the scheme is of utmost importance to the Income Tax Department and the CBDT is aware of its responsibility towards fulfilling this crucial role," the statement said. As per the IDS facility, one can pay tax under the scheme by cash in a bank and no inquiry will be made by any bank official.

Also information about those who declare their black money under the compliance window will be kept confidential. The government in July extended the deadline for payment of tax and penalty under the black money disclosure scheme and allowed declarants to pay the amount in three installments by September 30, 2017. 

The first installment of 25 per cent will have to be paid by November 2016 to be followed by another installment of 25 per cent by 31 March, 2017.
The remaining amount will have to be paid to the exchequer by September 30, 2017. Earlier, tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30 this year.