Information disclosed under Income Declaration Scheme can be made public
Q. The Income Declaration Scheme offers people with undisclosed income to declare it. The declarations made- Published on 10 May 16a. Would not be made public
b. Would be made public
c. Would be made public if in public interest
d. Would not be made public unless judiciary orders
ANSWER: Would be made public if in public interest
- The taxman can reveal information related to taxpayers disclosing previously concealed income under the Budget’s Income Declaration Scheme, if it is deemed to be in public interest.
- An amendment to this effect has been made in the Finance Bill of 2016 approved by the Lok Sabha.
- Tax experts said the amendment is aimed to allay any misconceptions that the government would keep such taxpayers' details confidential under any circumstance.
- The Income Declaration Scheme offers people with undisclosed income to declare it by paying a penal tax rate of 45 per cent on such income. The final version of the Finance Bill okayed by the Lok Sabha has imported Section 138 of the Income Tax Act into the declaration scheme's ambit.
- The key to this, according to tax experts, is the objectivity of the Chief Commissioner. The discretion has been given to the Chief Commissioner who is a very senior authority and he has to see if it is in public interest to share the information.
