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‘Black money info will not be used by another authority’
NEW DELHI: Finance minister Arun Jaitley on Tuesday met chartered accountants, tax professionals and industry bodies, and assured strict confidentiality about hidden
NEW DELHI: Finance minister Arun Jaitley on Tuesday met chartered accountants, tax professionals and industry bodies, and assured strict confidentiality about hidden assets disclosed under a special scheme that is currently open.
The Centre has opened a special window — Income Declaration Scheme, 2016 — that gives tax evaders four months to declare undisclosed income or face strong punitive action.
The scheme, announced in the budget, will remain in force from June 1 to September 30. Those who had under-reported their income or assets for the previous assessment years have the option to come clean by paying tax, interest and penalty totalling 45% of the undisclosed income.
Tax evaders could face a penalty of 90% tax and imprisonment up to seven years.
Jaitley said information on assets disclosed during the onetime window will not be used by any other authority for further probe or prosecution.
The meeting was also attended by power minister Piyush Goyal, oil minister Dharmendra Pradhan, commerce and industry minister Nirmala Sitharaman and minister of state at the PMO Jitender Singh. There has been a “lukewarm response” to the scheme, which has been on for almost a month now, according to a source.
The scheme has triggered fears of misuse against those who disclose concealed assets.
“The income tax rate of 45% applicable on black money declared is too high. Globally, the applicable rate is 30% for such schemes. This could be a reason for the lack of enthusiasm towards the scheme, so far” said a source, who did not wish to be identified.
“Other ministers attended the meeting to get familiarised with the provisions of the scheme. Tax officials and ministers will travel across the country to popularise this one-time opportunity to come clean” said the finance minister.
Trade bodies have suggested that the tax should be allowed to be paid in installments.
“We will consider this,” Jaitley added.
On Sunday Prime Minister Narendra Modi reaffirmed his government’s efforts to check black money, asking tax evaders to come clean and declare their undisclosed income or face strong penal action.
Successive governments have struggled with under-reporting of taxes, seen as a major hurdle in expanding state revenues, as well as with growing undisclosed incomes, or what is known as black money, to avoid taxation.
