| Declaration in IDS, 2016 | Declaration of cash deposits in ITR as current year's income |
| One could make declaration in IDS without declaring any source of the income. | One has to explain the source of income and manner of deriving the income and period in which it was derived. |
| Declaration in IDS, 2016 granted one-time immunity from penalty and prosecution under the Income Tax Act, 1961 and Wealth Tax Act, 1957. | If cash deposited in bank cannot be proved to be current year's income and found to be accumulated from past years also, Wealth Tax proceedings can be reopened. |
| FFurther, IDS assured declarant of secrecy of declaration. In such case, the Government would not furnish a copy of the declaration to any other Government agency or Department. | Details of cash deposit would be made available by Govt. to other agencies. Departments dealing with indirect taxes. VAT/Service Tax/Excise dept. may launch proceedings for suppression of sales and evasion of indirect taxes |
| If part of sale proceed of property is received off-record, the same could be declared without attracting section 269SSof Income-Tax Act, 1961 and penalty under section 271D. | If property sale proceed received in black is declared, section 269SS would be attracted and assessee would liable to penalty under section 271D. |
| One could declare past years' undisclosed income also by just paying 45% without liability for interest under sections 234Band 234C. | One would incur huge interest liability if declared amount cannot be proved as current income and found as past income. |
| Last but not the least, IDS scheme allowed payment by instalments-at least 25% by 30.11.2016, not less than 50% by 31.03.2017 and entire amount by 30.09.2017. | Entire amount of advance tax on amount deposited in bank and to be declared will have to be paid latest by 31.03.2017. |
