Govt amends rules for valuation of registered property under income declaration scheme

The government on Thursday said that in the case of income declaration where acquisition of immovable property is involved an option will be available with the declarant to declare the fair market value of such property by applying the cost inflation index to stamp duty value of the property.

A finance ministry statement said that after due consideration representations, rules under Income Declaration Scheme 2016, have been amended to provide that where acquisition of an immovable property is evidenced by a registered deed, an option be provided to the declarant the fair market value of immoveable property acquired through Registered Deed amended.

The Income Declaration Scheme, 2016 offers an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. Income Declaration Scheme Rules, 2016 were notified on 19 May 2016.

Various stakeholders have made representations for addition of an option to rules for valuation of immoveable property on the basis of the registered value. ''After due consideration of the representations, the rules have been amended to provide that where acquisition of an immovable property is evidenced by a registered deed,  an option shall be available with the declarant to declare the fair market value of such property by applying the cost inflation index to stamp duty value of the property,'' the release stated.

Further, the Income tax Department has provided clarification on various issues under the Scheme under the fifth set of Frequently Asked Questions (FAQs), which is now available on the official website of the Income Tax Department (www.incometaxindia.gov.in).