New Delhi: The government is expected to receive Rs 14,700 crore, or 0.1 percent of GDP this fiscal from the income declaration scheme (IDS), says a Nomura report.
"The government will raise Rs 147 billion, or 0.1 percent of GDP (50 percent of the total tax payable) in FY17 (year ending March 2017) and the rest in the next fiscal year," according to the Japanese financial services major.
Income declaration scheme (IDS) 2016 provided an opportunity for people to disclose their hitherto undisclosed domestic income and assets. The window was open from June 1 to September 30, 2016. A declarant had to pay a tax of 45 percent on the undisclosed income.
At the end of the scheme, cash and other assets worth Rs 65,200 crore (USD 9.8 billion, or 0.4 percent of GDP) were reported, "which was more than we expected", Nomura said.
At a 45 percent tax rate, the government will earn Rs 29,400 crore (0.2 percent of GDP) in additional revenues.
The total tax amount can be paid in three instalments: 25 percent by November 30, 25 percent by March 31, 2017 and the remaining 50 percent by September 30 2017.
Hence, the government will raise Rs 14,700 crore or 0.1 percent of GDP in FY17 and the rest in the next fiscal year, Nomura added.