The Economic Times

Self-reporting of unexplained income in ITR to save 50%: A permanent Voluntary Disclosure of Income Scheme (VDIS) in Budget 2026?

Budget 2026 reshapes taxation of unexplained income. Self-reporting undisclosed income now attracts a 30% tax rate. This is a significant reduction from the previous 60% rate. Income detected by tax authorities faces a 200% penalty. This creates a compliance-first architecture. It rewards early disclosure with predictable costs. Concealment becomes financially punitive. This functions like a permanent disclosure scheme.