The Narendra Modi government’s Income Disclosure Scheme has netted Rs 65,250 crore of undeclared income and assets. Finance Minister Arun Jaitley called it a positive development, as “more people are becoming tax compliant”.
Jaitley said 64,275 declarations were filed under IDS-2016 up to the midnight of September 30 as the four-month window closed. With the final stock-taking of declarations being filed on printed forms all over the country till late in the night, this number was likely to go up. Of the Rs 65,250 crore, 45 per cent will go to the government as tax and penalty. This works out to be Rs 29,362 crore.
Seeking to dispel comparisons between IDS and VDIS (Voluntary Disclosure of Income Scheme) in 1997, Jaitley said: “IDS 2016 is not an amnesty scheme like VDIS of 1997 as we didn’t want to benefit the non-tax compliant vis a vis the tax compliant.”
He said IDS had a penalty provision of 15 per cent above the tax rate while under VDIS, the effective rate worked out in single digit since the value of the asset was taken as one 10 years ago. Jaitley said the tax collected under VDIS was Rs 9,760 crore with an average declaration of Rs 7 lakh. The tax collected via IDS would go into the Consolidated Fund of India and used in the social sector and rural welfare schemes, he said.
The Finance Minister said the government had initiated several steps to unearth black money both in India and abroad and that upgradation of IT capabilities had led to non-intrusive methods of detection of tax evasion.
Other steps included filing of 164 prosecution complaints in l75 HSBC cases and detection of Rs 5,000 crore of undisclosed deposits in foreign accounts. Investigations in Panama cases had led to 250 references being made to other countries asking for details about tax evaders, he said.
This is not an immunity scheme. There is tax involved and there is penalty. In the 1997 scheme, the taxation figure was about Rs 9,760 crore. Now, the effective rate of taxation is 45%, but in 1997 the effective rate of taxation was in single digit. —Arun Jaitley, Finance Minister
Jaitley said 64,275 declarations were filed under IDS-2016 up to the midnight of September 30 as the four-month window closed. With the final stock-taking of declarations being filed on printed forms all over the country till late in the night, this number was likely to go up. Of the Rs 65,250 crore, 45 per cent will go to the government as tax and penalty. This works out to be Rs 29,362 crore.
Seeking to dispel comparisons between IDS and VDIS (Voluntary Disclosure of Income Scheme) in 1997, Jaitley said: “IDS 2016 is not an amnesty scheme like VDIS of 1997 as we didn’t want to benefit the non-tax compliant vis a vis the tax compliant.”
He said IDS had a penalty provision of 15 per cent above the tax rate while under VDIS, the effective rate worked out in single digit since the value of the asset was taken as one 10 years ago. Jaitley said the tax collected under VDIS was Rs 9,760 crore with an average declaration of Rs 7 lakh. The tax collected via IDS would go into the Consolidated Fund of India and used in the social sector and rural welfare schemes, he said.
The Finance Minister said the government had initiated several steps to unearth black money both in India and abroad and that upgradation of IT capabilities had led to non-intrusive methods of detection of tax evasion.
Other steps included filing of 164 prosecution complaints in l75 HSBC cases and detection of Rs 5,000 crore of undisclosed deposits in foreign accounts. Investigations in Panama cases had led to 250 references being made to other countries asking for details about tax evaders, he said.
This is not an immunity scheme. There is tax involved and there is penalty. In the 1997 scheme, the taxation figure was about Rs 9,760 crore. Now, the effective rate of taxation is 45%, but in 1997 the effective rate of taxation was in single digit. —Arun Jaitley, Finance Minister
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