The Income Declaration Scheme (IDS), 2016, introduced by the Government of India under Chapter IX of the Finance Act, 2016, represented one of the most significant tax amnesty initiatives undertaken to address the persistent challenge of undisclosed income and assets, commonly referred to as black money. The scheme provided taxpayers with a limited-time opportunity to disclose previously unreported income and assets by paying tax, surcharge, and penalty amounting to 45 per cent of the declared income. In return, declarants received immunity from prosecution under specified tax laws. This paper critically examines the objectives, structure, implementation, outcomes and policy implications of IDS 2016. Drawing upon government reports, policy documents, and scholarly interpretations, the study evaluates the effectiveness of the scheme in broadening the tax base, improving voluntary compliance, and generating revenue. The findings suggest that while IDS 2016 succeeded in eliciting substantial disclosures and contributed to enhanced tax compliance, its long-term effectiveness remains debatable due to recurring concerns regarding moral hazard, equity, and the sustainability of tax amnesty programs.