Form 1
This form can be accessed on the Income Tax e-filing portal and filled up online. Alternatively, it can be downloaded in xml format, filled up, then scanned and uploaded on the portal.
Information
The declarant is required to provide basic details about the year(s) for which the declaration is being made, the head of income to which it pertains and amount. If the undisclosed income has been converted to assets, the fair market value of assets as on 1 June 2016 must be disclosed.
Documents
A valuation report by a registered and approved valuer may be submitted along with Form 1. But this is not compulsory.
Submission
The form can be submitted online by using the digital signature of the declarant, or using an electronic verification code. Once the form is uploaded, the IT department will issue Form 2 as an acknowledgement of the receipt of Form 1.
Payment of tax
Once Form 2 is received the declarant can make the payment of income tax on the undisclosed income at the rate of 45% (including surcharge and penalty).
Form 3
After making the payment, proof of payment must be furnished by uploading Form 3. The proof of payment of tax also needs to be attached.
Points to note
Instead of filing the declaration online, one can also make a physical submission.
Immunity is provided only for the undisclosed income declared under the scheme and not for the income that remains to be disclosed.
If the person fails to pay the required amount of tax and penalty by the last date, the declaration will be rendered invalid.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)