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Difficult to avoid tax disclosure under new scheme: SIT chief

SIT chairperson justice (retd) MB Shah said the Income Tax department has “tightened each and every angle” under the current scheme, and hence evading disclosure under this scheme will be “100%” difficult

business Updated: Jun 19, 2016 13:13 IST
PTI
SIT chairperson justice (retd) MB Shah said the Income Tax department has tightened each and every angle under the current scheme, and hence evading disclosure under this scheme will be 100%” difficult.
SIT chairperson justice (retd) MB Shah said the Income Tax department has tightened each and every angle under the current scheme, and hence evading disclosure under this scheme will be 100%” difficult.(File Photo)

The chief of SIT on black money feels it will be “difficult” for those holding untaxed assets to avoid disclosure under the ongoing one-time compliance window opened by the government after the limited success of a similar scheme launched last year for those with tainted money overseas.

SIT chairperson justice (retd) MB Shah said the Income Tax department has “tightened each and every angle” under the current scheme, and hence evading disclosure under this scheme will be “100%” difficult.

“The last such scheme was not successful... rather it was successful to some extent in the sense that attention was drawn prominently that if something is found (at a later stage) they will be subsequently prosecuted... to some extent it had a deterrent effect.

“Now, this time it will be difficult (for evaders),” Shah told PTI.

He said the issue of P-notes (participatory notes) has also been “controlled” to a large extent and hence it will not be easy for tax evaders to hide their assets and funds from agencies like the Income Tax department and they will now have to disclose it to them.

The SIT had last year suggested that market regulator Sebi put in place regulations that will help identify individuals holding P-Notes or offshore derivative instruments (ODIs), and take other steps required to curb black money and tax evasion through the stock market route.

P-Notes are used by a large number of foreign investors to park funds in the equity market without disclosing their identity to the Sebi.

Talking about the probe in the ‘Panama Papers’ issue, the SIT chairperson said investigating agencies are facing “difficulties” in reaching to the bottom of the matter as they are not getting specific account numbers and people named in the list are also “not disclosing” the details to the taxman.