New Delhi:
Income tax department will not question the valuation report from the registered valuer about black money compliance scheme, the CBDT clarified on Friday. "However, the valuer is expected to furnish a true and correct valuation report in accordance with the accepted principles of valuation.
In case of any misrepresentation, appropriate action as per law shall be taken against the registered valuer," said the fifth set of Frequently Asked Questions (FAQs). CBDT had received representations from stakeholders to provide an option to value the immovable property on the basis of the registered value.
"After due consideration of the representations, the Rules have been amended to provide that where acquisition of an immovable property is evidenced by a registered deed, an option shall be available with the declarant to declare the fair market value of such property by applying the cost inflation index to stamp duty value of the property," the FAQs said.
The Income Declaration Scheme, 2016, provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. A four month window till September 30 has been provided for such persons to come clean by paying tax and penalty of 45 per cent of the undisclosed asset. In suppression to the earlier clarification, CBDT's FAQ said period of holding of asset declared would be based on the actual date of acquisition of such asset.
"However, the indexation benefit in respect of the amount declared under the Scheme shall be available from June 01, 2016 only," it said. In case a person has already filed declaration under the IDS, the FAQ said a revised filing could be made. The period of holding of assets declared under the Scheme would be taken on the basis of the actual date of acquisition of such asset and not from June 1, 2016, the day declaration window under IDS opened.
Declarants have also been assured that no adverse action would be taken against them by Financial Intelligence Unit of the tax department solely on the basis of cash deposits made in banks under the Scheme. Meanwhile, RBI has been asked to issue instruction to banks to accept payment of tax and penalty in cash under the scheme. FAQ also said the declarant has to declare the amount of weighted deduction claimed in respect of bogus donation.
