Black money: No proposal to extend Income Disclosure Scheme deadline, says Govt

New Delhi: The government on Friday said it is not considering any proposal to extend the four-month deadline for disclosing domestic black money under the Income Disclosure Scheme (IDS), which ends on September 30.

On a question whether the government has any plans to extend the IDS deadline, Minister of State for Finance Santosh Kumar Gangwar said, "There is no such proposal under consideration."

The IDS-2016 has commenced on June 1 and shall be open for declaration till September 30, 2016, he said in a written reply in the Lok Sabha.

"The information regarding the recovery of black money under the four-month single window facility given, shall be firmed-up after the closure of the scheme," he said.

The window provides an opportunity to persons who have not paid full tax in the past to come forward and declare the undisclosed income by paying tax, surcharge and penalty, totalling to 45 percent of the income declared.

Section 138 of the Income-Tax Act has been imported to the Income Declaration Scheme, 2016, that provides for treating material disclosed as confidential. It also provides for such "classified material" not being produced or used in court except in order to institute or assist in the course of a prosecution for any offence committed in relation to tax.

IDS provides for immunity from prosecution under the Income-tax Act and Wealth Tax Act alongside immunity from the Benami Transactions (Prohibition) Act, 1988.

However, the government has extended the deadline for payment of tax and penalty under IDS and allowed declarants to pay the amount in three installments by September 30 next year.

The first installment of 25 percent under the IDS 2016 will have to be paid by November 2016 to be followed by another one of 25 percent by March 31, 2017.

The remaining amount will have to be paid to the exchequer by September 30, 2017.

Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30 this year.