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Govt may allow EMIs for black money tax
NEW DELHI: The government is considering an extension of the deadline for declaration of hidden assets and allow individuals to pay the tax and penalty in installments.
NEW DELHI: The government is considering an extension of the deadline for declaration of hidden assets and allow individuals to pay the tax and penalty in installments.
“Real estate is the biggest sector where black money is parked, it is difficult to liquidate the asset and pay up within four months. So an extension and the option to pay in installments are being considered,” said a source in the tax department.
The move comes amid rumours of a lukewarm response to the one-time Income Declaration Scheme (IDS) 2016. The window, which opened on June 1, will close on September 30. Tax and penalty on the income declared, which total to 45% of the income declared, are to be paid by November.
“The government wants to ensure that the tax collection through this scheme is sizeable. So provisions to help evaders pay-up are being considered,” said the source quoted above.
There have been requests from industry bodies in their meetings with finance ministry functionaries to extend the deadline of the tax payment.
“We have received several requests for extending the deadline and we are considering it. The provisions allow us to do it,” said another official.
Successive governments have struggled with under-reporting of taxes and growing undisclosed income and with recovery of black money being one of the major electoral promises of the NDA-government, sources say the Centre is putting in all efforts to ensure its (IDS-2016) success.
Following the opening of the on-time compliance in June, finance minister Arun Jaitley has met industry bodies and tax professionals.
Other ministers have also been roped in to spread the message of this scheme across the country.
