Saturday, August 20, 2016

Updates on Income Declaration Scheme

Recently, the CBDT has amended Income Declaration Scheme (‘IDS’) Rules and it has also issued fi􀁺h set of FAQs on IDS.

Key takeaways from such changes are given here under:

1) The CBDT has amended the valuation rules to determine fair value of property declared under IDS on basis of stamp duty valuation.

2) Where loans, creditors, advances received, share capital, payables etc. are disclosed in the audited balance sheet but are fictitious in nature and cannot be directly linked to acquisition of a particular asset, then such fictitious liabilities can be disclosed under the IDS as such without linking the same with the investment in any specific asset.

3) The income declared under the IDS for an earlier assessment year can be taken into account to explain the related transactions of the subsequent assessment years in assessment proceedings pending before the Assessing Officer provided there is a nexus between the two.