The Board has clarified
that in case of the income chargeable to tax is represented in the form of
investment in any asset, the fair market value of such asset as on 01.06.2016
shall be deemed to be the undisclosed income for the purpose of Income Tax
declaration scheme, 2016. It also specified that cash in hand is an asset for
the purpose of the scheme.
Many instances have been
brought to the notice of the Board where some taxpayer are of the view that if
a capital asset acquired out of undisclosed income is sold before 01.06.2016
and the sale proceeds so received are held in cash, then the amount of
undisclosed income required to be declared under the Scheme shall be the amount
of undisclosed income invested in acquisition of such capital asset as
increased by the capital gain arising on sale of such asset determined in
accordance with the provisions of the Income-tax Act, 1961 (i.e. sale
consideration less indexed cost of acquisition).
In this regard, it is
clarified by the board that the above method for arriving at the amount of
undisclosed income for declaration under the Scheme is not in accordance with
the provisions of the Scheme and clarification circulars issued by the Board
from time-to-time.
(CBDT, Instruction No.9,
Dated: 27-09-2016)
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