The government will earn an estimated Rs 30,000 crore after thousands of Indians revealed previously undeclared money under a one-time opportunity to clean up their accounts. Rs 65,250 crore worth “black money” was disclosed in the form of cash and other assets during a four-month window — Income Disclosure Scheme (IDS) — that ended Friday. He said 64,275 declarations were made with an average of Rs 1 crore each filing.

• The additional revenue will be used for welfare schemes,Black money arises mainly from incomes not disclosed to the government, usually to avoid taxation and sometimes because of its criminal links.

Income Disclosure Scheme (IDS)-2016

Income Declaration Scheme 2016 is an opportunity for those who didn’t disclose income or pay taxes thereon in the past.

• Income Declaration Scheme 2016 came into effect from 1 June, 2016. It’s an opportunity for those who didn’t disclose income or pay taxes thereon in the past.
• Under this scheme, such persons can declare the undisclosed income and pay tax, surcharge and penalty on the declared undisclosed income.
• Declaration of undisclosed income or asset should have been chargeable to tax for any assessment year prior to the assessment year 2017-18.
• The person making a declaration under the scheme will have to pay income tax at the rate of 30% of the value of undisclosed income plus a surcharge of 25% thereon.
• Additionally, the person will be liable to pay a penalty at the rate of 25% of the tax, which would make the total payment 45% of the undisclosed income.
• The Centre has declared 30 September as the last date for making a declaration and 30 November as the date by which the tax, surcharge and penalty may be paid.