Voluntary Disclosure India – New Circular of the Indian Ministry of Finance
On July 14, 2016, the Indian Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (TPL Division) has issued Circular No. 27 of 2016. The Circular contains clarifications on the Income Declaration Scheme, 2016 (IDS, also called “Scheme”). The Scheme allows Indian taxable persons to come forward and to regularize income not declared correctly in the past. The voluntary disclosure program has started on June 1, 2016 and runs by September 30, 2016. You find more information about the program and the legal basis in our VDP Country Fact Sheet section.
India has committed to the Automatic Exchange of Information (AEoI)/Common Reporting Standard (CRS) and is an Early Adopter state. That is, in 2017 India will exchange tax relevant account information collected in 2016 with other participating countries. Therefore, the Scheme could be the last chance for the taxable person to become tax-compliant before the tax administration will receive automatically the data.