Come clean on undisclosed income by Sep 30 or face difficulties: PM Modi

Prime Minister Narendra Modi on Sunday urged tax evaders to reveal undisclosed income under the black money compliance window.

While speaking to the nation on 'Mann ki Baat', Modi said, "I urge everyone to disclose undisclosed income by September 30. This is the last chance to avoid any problems."

Further, he said, "Those who do not disclose undisclosed income by September 30 will face difficulties."

According to a media report, Modi has assured that the names of those who use the black money compliance window, will not be disclosed in public and will remain confidential.

The scheme was announced by the government with an aim to clamp down on black money in the country. 

Earlier, government had come out with a similar scheme for Indians holding undisclosed income abroad.

The scheme applies to undisclosed income in the form of investment in assets or otherwise, pertaining to financial year 2015-16 or earlier.

Declarations under the Income Declaration Scheme (IDS) can either be made online on the official e-filing website of the IT department or before various regional Principal Commissioners of IT in the country.

An explanatory circular and first set of 14 FAQs were released by the CBDT in May, well before the window got activated in June. Under the scheme, income as declared by the eligible persons would be taxed at the rate of 45% which is 30% plus a 'Krishi Kalyan Cess' of 25% and a penalty at the rate of 25%.

These taxes and penalties have to be paid by November 30 after the window closes in September.