Income Disclosure Scheme: Taxmen to seek info from suspected black money holders

New Delhi: Tax authorities plan to seek details from various entities against whom there is specific information of having undisclosed assets, as part of the domestic black money disclosure scheme.

Sources said such a move would act as a deterrent against those holding illicit assets and nudge them to come clean. Such entities will now have the opportunity to participate in Income Disclosure Scheme (IDS) before it ends on September 30, they added.

The Tax Department is considering sending e-mails to the entities against whom it has information of not disclosing assets that are taxable, the sources said.

Such communications will cite some of the instances of undisclosed assets involving the entities concerned and then ask them to clarify on the same, they said, adding that such entities should be getting the letters by early next month.

According to the sources, such an exercise would also help in ensuring no panic is created among the tax payers with regard to alleged undisclosed assets and "all such communications would be strictly confidential".

As part of larger efforts to curb the black money menace, the government has been urging the entities to come forward and make use of the IDS.

Finance Minister Arun Jaitley, on multiple occasions, has asked domestic black money holders to take advantage of the ongoing scheme.

As part of the IDS exercise, the department last week clarified that black money declarants using the one-time compliance window cannot pay tax and penalty from undisclosed income to bring down their liability and such acts will not get any immunity.

The clarification in the form of fourth set of frequently asked questions (FAQs) stated that there is no intent to "modify or alter the rate of tax, surcharge and penalty payable under the Scheme which have been clearly specified in the Scheme itself".

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

The first instalment of 25 per cent under the IDS 2016 will have to be paid by November 2016 to be followed by another one of 25 per cent 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.