The Finance Ministry has come out with the fifth set of frequently asked questions providing clarifications for the Income Declaration Scheme on Thursday.
The FAQs provide clarification that fictitious liabilities in an audited balance-sheet can be disclosed under the scheme without linking it to the investment in any specific asset. Further, income declared under the scheme for an earlier assessment year can be taken into account to explain related transactions.
Adverse action will not be taken against the declarant by the Financial Intelligence Unit solely on the basis of cash deposits made in banks consequent to declarations made under the scheme.
Finally, the period of holding of assets declared under the scheme will be taken on the basis of actual date of acquisition of the asset and not June 1, 2016, as was clarified earlier.
Immovable propertyThe Finance Ministry has also clarified that under the scheme, whenever an immovable property is evidenced by a registered deed, the declarant will have the option to mention the fair market value of such property by applying the cost inflation index to the stamp duty value of the property.
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