The government on Wednesday said it will not come up with any tax amnesty scheme to unearth black money as it acts as a disincentive to honest tax payers.
“The experience shows when you bring in VDIS (voluntary disclosure of income scheme), it discriminates against genuine tax payers... those of you who pay taxes are disincentivised, it goes against honest tax payers... it may not be a conducive path for recovering more taxes,” Nirmala Sitharaman, minister of state for finance, said in the Rajya Sabha.
Meanwhile, while replying to a debate on the finance bill in the upper house, finance minister Arun Jaitley said that the controversial General Anti-Avoidance Rules (GAAR) will reviewed by the government once the budget process is over. “After the budget, we will be looking into the issue and we will see whatever is to be done.”
The implementation of GAAR, announced by the previous UPA government, had dented investor sentiment. It allows the revenue department to invalidate any transaction that has been undertaken to deliberately avoid tax and was applicable to those claiming tax benefits of over Rs. 3 crore.
Jaitley also said that there is no need to press the alarm button on the monsoon situation. “The situation is optimistic and we should not assume that there will be a drought like situation.monsoon has picked up... in case there are areas where monsoon is deficient and crops have been affected, the government has a back up plan and that will be executed,” Jaitley said.