Finance minister Arun Jaitley on Monday announced amnesty scheme for those holding black money in the country.
Finance minister Arun Jaitley on Monday announced amnesty scheme for those holding black money in the country. This comes after a similar scheme was launched by the Modi government last year for those who held blackmoney or undisclosed assets in foreign countries.
The scheme announced on Monday will have a four-month compliance window for domestic black money holders to come clean by paying tax and a penalty of 45 per cent.
“There is monumental income-tax law changes which I have made... It’s not a VDIS (Voluntary Disclosure of Income Scheme) and it is not an amnesty,” Mr Jaitley said after presenting the budget.
Amnesty, he said, is that 1996 VDIS and the present scheme is not structured that way. The government plans to open the window under this Income Disclosure Scheme from 1st June to 30th September, 2016, with an option to pay amount due within two months of declaration.
“I propose a limited period compliance window for domestic taxpayers to declare undisclosed income or income represented in the form of any asset and clear up their past tax transgressions by paying tax at 30 per cent, and surcharge at 7.5 per cent and penalty at 7.5 per cent, which is a total of 45 per cent of the undisclosed income,” said Mr Jaitley while presenting the Budget in Parliament.
He said that there will be no scrutiny or inquiry regarding income declared in these declarations under the Income-Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. “Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed subject to certain conditions. The surcharge levied at 7.5 per cent of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy,” said the finance minister.
The government had collected Rs 2,428 crore in taxes after over 644 declarations were made under one-time black money compliance window announced by the finance ministry last year.