AMN /
Finance Minister Arun Jaitley on Tuesday said information on assets disclosed during the one-time compliance window will not be shared with any other authority.
Finance Minister Arun Jaitley has asked the people having black money to declare their undisclosed income under Income Declaration Scheme, IDS. Talking to media after holding a meeting with representatives of industry bodies to discuss black money in New Delhi, Mr Jaitley said the last date, which is 30th of September, will not be extended.
He said, people can legitimize their ill gotten money by paying 45 per cent tax of their income. He added that any declaration made under the scheme will be confidential and it would not be shared with any other authorities.
The four-month window under the Income Declaration Scheme, which opened on 1st of this month, allows domestic black money holders to declare their ill-gotten wealth by paying a tax and penalty totaling 45 per cent. The scheme applies to undisclosed income in the form of assets pertaining to Financial Year 2015-16 or earlier. The assets declared will be exempt from wealth tax. Further the person declaring the income will not be liable under Income Tax Act, and Wealth Tax Act.
Prime Minister Narendra Modi in his latest edition of Mann Ki Baat on All India Radio had asked the people to come forward and take advantage of the Income Declaration Scheme. He wondered how there can only be 1.5 lakh people with a taxable income over 50 lakh rupees in a country of a billion people.
Today meeting was called by the Revenue Department as well as the Central Board of Direct Taxes (CBDT) with industry chambers, trade bodies, CAs and tax professionals to discuss the income disclosure scheme.
“We are taking this as a campaign, as a mission mode and the professional bodies and trade organisations, we have taken their suggestions. We will come out with a third FAQ. We expect that anyone who has such income they disclose it and legitimise their income and assets,” he said.
Government ministers as well as CBDT officials will be travelling throughout the country to educate people about the scheme, so that maximum number of people avail of it, he said.
Prime Minister Narendra Modi had earlier this week warned that the black money holders to take advantage of the scheme or face action.
“It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30,” he said.
The four-pronged strategy prepared by the CBDT for the success of the scheme, includes single point contact to ensure confidentiality, setting up of facilitation centres across the country, giving wide publicity and monitoring at the highest.
Government has promised that there will be no inquiry into the source of the undisclosed income and assets if declaration is made voluntarily.
In order to give wide publicity, the CBDT has also suggested putting up posters about the Income Declaration Scheme-2016, at places frequented by potential declarants, like club houses, posh markets, showrooms of high end products.
Last year the government came up with a similar scheme for persons having unaccounted black money abroad. Disclosures during that window were charged with a total tax and penalty of 60 per cent.
A total of Rs 4,147 crore of undisclosed wealth was declared during the 90-day foreign black money compliance window that ended September 30. At 60 per cent (30 per cent tax and 30 per cent penalty), the government got a net tax of Rs 2,500 crore from the declarations.