Black money crackdown: Rs 65,250 crore mopped up via Income disclosure scheme (IDS)
Income declaration scheme (IDS), 2016 was a scheme introduced by Narendra Modi led government to unearth black money and bring it back into the system.
New Delhi: Income declaration scheme (IDS), 2016 was a scheme introduced by Narendra Modi led government to unearth black money and bring it back into the system.
IDS that ended on September 30 managed to mop up Rs 65,250 crore. It was a major boost to government's efforts in cracking down on black money, Not only the scheme helped in cracking down on the unaccounted money in the economy in a big way but also added substantial amount of cash to the government coffers. Even in the ongoing Demonetisation program, the central government has introduced income declaration scheme but with slightly high tax rate of 50 percent.
IDS as source of public benefit
Government has announced that the money will go Into the Consolidated Fund of India and would be used for public welfare in social schemes.
On 1st October, 2016, it was announced that declarations totaling Rs. 65,250 crore were received from 64,275 declarants, subject to reconciliation. After final reconciliation the revised figure of actual declarations received and taken on record was Rs. 67,382 crore which had been made by 71,726 declarants. The final number clearly suggests that the central government and its battery of income tax officers have ensured that largest amount of unaccounted cash can be tracked and diverted into channels of public welfare either through a Consolidated Fund or other means. This scheme has given a big fillip to the present government’s popular slogan of drying up all sources of black money and ensuring all such money comes under tax net.
IDS was announced in the Union Budget 2016-17 under which declaration of undisclosed income or asset could be made by agreeing to pay forty five percent (45 percent) of the declared amount as tax, surcharge and penalty. The scheme closed 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.
Among the declarations received, there were two sets of declarations of high value which were not taken on record in the above figure because these declarations were found to be suspicious in nature being filed by persons of small means.
A family of four declarants namely, Mr. Abdul Razzaque Mohammed Sayed (self), Mr.Mohammed Aarif Abdul Razzaque Sayed (son), Shrimati Rukhsana Abdul Razzaque Sayed (wife) and Ms.Noorjahan Mohammed Sayed (sister) who were shown as residents of Flat no. 4 , Ground Floor , Jubilee Court, 269-B, T.P.S-III, Linking Road, Bandra (W), Mumbai, filed a total declaration of Rs. Two lakh crore (Rs. 2, 00,000 crore). Three out of the four PAN numbers were originally in Ajmer which was migrated to Mumbai in September 2016, where the declarations were filed. The other declaration was filed by one Mr. Mahesh Kumar Champaklal Shah resident of 206, MangalJyot Tower, Jodhpur Gram Satellite, Ahmedabad for an amount of Rs.Thirteen Thousand Eight Hundred and Sixty crore (Rs.13,860 crore).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.