Record black money declaration: Rs 65,250 crore mopped up under Income Declaration Scheme
What should be termed as a boost to government's efforts in cracking down on black money, the Income Tax Declaration Scheme that ended on September 30 managed to mop up Rs 65,250 crore.
Zee Media Bureau
New Delhi: What should be termed as a boost to government's efforts in cracking down on black money, the Income Tax Declaration Scheme that ended on September 30 managed to mop up Rs 65,250 crore.
Finance Minister Arun Jaitely, on Saturday disclosed the cumulative amount collected by the income tax department. He also disclosed that 64,275 disclosures were made under the IDS scheme. Jaitley added that the money will go into the Consolidated fund of India and would be used for public welfare in social schemes.
Jaitley added that black money declaration figure could be revised upwards, once final assessment was complete.
The Income Declaration Scheme, 2016 came into effect from 1st June, 2016. It provided an opportunity to persons who had not paid full taxes in the past to come forward and declare their domestic undisclosed income and assets.Declarations could be made online as well in printed copies of the prescribed form up to midnight on 30th September, 2016.
If a person declared Rs 100 lakh as undisclosed income under the scheme, then he would have to pay a total of Rs.45 lakh as tax, surcharge and penalty.
The scheme said that ,“In case this is paid from other undisclosed income, then “the declarant will not get any immunity under the Scheme.”
Arun Jaitley also said that there will be no vindictive or fvourable action take against anyone.
"The department does not intend to be vindictive. Declarants will be treated under relevant tax laws, irrespective of filing under the Income Disclosure Scheme. Regarding the action henceforth, this is an issue of tax department. Individual taxmen will not take vindictive action," said Jaitley.
The major steps taken by the Government against Black Money in the last more than two years include:
SIT: Many recommendations accepted such as mandatory quoting of PAN for cash transactions etc.
Legal Framework: Making tax crimes predicate offence under PMLA; Amendment of FEMA to provide for confiscation of domestic assets in place of foreign assets; Enactment of Black Money Law and Amendment to Benami Act.
International Treaties: Signing of FATCA with US; Amendment of Mauritius Treaty; Initiative for signing of Automatic Exchange of Information Treaty with all major countries including Switzerland, Initiatives under BEPS (Based Erosion and Profit Sharing) such as country by country reporting, PoEM ( Place of Effective Management) etc.
Detection and administration of tax evasion cases: Assessment of Rs.8000 crore in HSBC cases as well as filing of 164 prosecution complaints in l75 HSBC cases; detection of Rs.5, 000 crores of undisclosed deposits in foreign accounts made out of ICIJ cases, 55 prosecution cases filed in those cases; Big investigation in Panama cases has led to 250 references being made to other countries asking for details about tax evaders, bank accounts etc.
The quantum jump in the searches and survey has resulted in seizure of Rs.1986 crores as well as undisclosed income of Rs.56, 378 crore in the last two and half years. The upgradation of IT capabilities has led to non-intrusive methods of detection of tax evasion. Rs.16, 000 crores received as tax out of one such system of Non-filers of Monitoring System (NMS). 3626 cases of prosecution and compounding in the last two and half years which is more than double as compared to previous two years.