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Income Declaration Scheme, 2016
A one-time amnesty window under the Union Budget 2016 allowing tax evaders to declare undisclosed income and assets by paying a tax and penalty.
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₹0 — completely free
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Highlights and Media
Key Highlights
Immunity from Prosecution
Provides total immunity from prosecution under the Income Tax, Wealth Tax, and Benami Transaction Acts.
No Scrutiny Guarantee
Declarations are kept strictly confidential with a guarantee of no subsequent audit or scrutiny.
Fixed Tax & Penalty Rate
A flat combined rate of 45% covering tax, Krishi Kalyan surcharge, and penalty.
IDS 2016 Penalty & Tax Breakdown
Component division of the 45% total payment on declared value
Base income tax charged on the total declared asset value.
Surcharge levied for agricultural and rural development initiatives.
One-time compliance penalty under the amnesty framework.
Who is eligible
- Eligible taxpayer or business entity with undisclosed assets who participated during the active window.
Eligibility rules · v1 · effective 1 January 2020
Who is not eligible
- This historical scheme is closed. Compliance is validated for previously registered declarations.
How to apply
Submission of Form-1
File Form-1 declaring the undisclosed income and assets to the Principal Commissioner or Commissioner of Income Tax.
Typical duration · 15 days
Payment of Tax and Penalty
Pay the 45% tax, surcharge, and penalty in prescribed installments through authorized bank channels.
Typical duration · 30 days
Issuance of Form-2 Certificate
Receive Form-2 certificate from the Income Tax department, validating completion of the declaration and granting legal immunity.
Typical duration · 15 days
Sources
- Income Tax Department, Government of IndiaMINISTRY_PORTAL · Fetched 5 July 2026
Additional Details
The Income Declaration Scheme, 2016 was a central tax amnesty program introduced by the Government of India as part of the 2016 Union Budget. The scheme ran from June 1, 2016, to September 30, 2016, offering an opportunity to individuals and entities to declare previously undisclosed income or assets. Declared amounts were subjected to a combined tax, surcharge, and penalty of 45% of the value of undisclosed income. Under the scheme, participants were granted immunity from prosecution under the Income Tax Act, Wealth Tax Act, and the Benami Transactions (Prohibition) Act, with a guarantee of absolute confidentiality and no scrutiny or inquiries regarding the declarations.