Income Tax Department Notifies 4 Forms

IAS Prelims 2023

The Income Tax department notified four new forms for those who wish to declare their untaxed funds and properties under the one-time domestic black money compliance window that opened this month.

The forms—1, 2, 3 and 4—can be used both for e-filing or manual filing of the black money assets by a declarant under the Income Declaration Scheme.

While in Form 1 the details of assets to be declared under the IDS is to be provided, Form 2 is the acknowledgement for the same that will be issued by the jurisdictional Principal Commissioner of Income Tax to such a person. Form 3 and 4 pertain to payment of taxes and penalty on these funds.

The forms have been uploaded on the e—filing portal of the department —

The forms have been activated too. The four-month IDS opened on 1st June and will be operational till September 30.

Under the scheme, persons making disclosure of unaccounted assets will be given time up to November 30 to pay taxes, penalty and surcharge totalling 45 per cent at the fair market value.

The scheme was announced by the Government with an aim to pump out black money from the domestic economy.

Earlier, the government had come out with a similar scheme for Indians holding undisclosed income abroad.

The scheme will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to financial year 2015-16 or earlier.

Declarations under IDS can either be made online on the official e-filing website of the I-T department or before various regional Principal Commissioners of I-T in the country.