Amongst the various
new schemes and changes brought about by the Budget, 2016, one of the most
talked about and significant change is Income Declaration Scheme, 2016 ("
herein after referred to as "the
Scheme" or "New
Scheme" or "Disclosure
Scheme, 2016" in the context in which it is required) . The
Scheme which has come into effect from 1st June, 2016 vide notification dated
19th May, 2016 is expected to bring about a change in the manner of
disclosure/declaration of undisclosed/undeclared income. The Scheme has been
introduced as a separate chapter, Chapter IX, to Finance Act, 2016.Further, the
government has notified the Income Declaration Rules, 2016(hereinafter referred as the Rules)to
give effect to various provisions of the Scheme.
Presently, the penal
consequences of not disclosing income (technically speaking concealment or
furnishing of inaccurate particulars of income) are so harsh and rigid that
they may act as a deterrence for the assessee, who might wish to disclose the
income, though there may be various others reasons for not disclosing the true
income. In view of this, introduction of new Scheme of Disclosure of Income is
a welcome change.
