Government is not extending the window for declaration of black money assets held abroad beyond September 30, said Mr V. Anandarajan, Joint Secretary, Central Board of Direct Taxes (CBDT), Ministry of Finance at an ASSOCHAM event.
The three month window for voluntary disclosure without criminal liability was enough to make affected people aware of the provision, said Mr Anandarajan while inaugurating 'Conference on Black Money Act: Ignorance is not Bliss!- Key aspects that everyone should know,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Mr V. Anandarajan said at an ASSOCHAM event on black money that he expected plenty of voluntary disclosures in the last week as it happens even in the submission of income tax.
On the issue of accidental discovery of funds abroad left by parents or as part of beneficiary funds, the Ministry official pointed out that the criminal liability was the same as in the provision of such discovery in the Income Tax Act (IT). In any case the Government has kept a threshold limit of Rs 5 lakhs for such accidental discovery that will not be penalized, added Mr Anandarajan.
Describing the Black Money legislation as a pretty touch Act Mr. Anandarajan said that the window was provided specifically due to this. He assured that the there would be no witch hunting, no fishing expedition, and very senior officers would be dealing with the implementation to avoid any misuse.
The provision for confiscation of discovered black money and assets abroad would be the same as in the Prevention of Money Laundering Legislation. He pointed out also that the purpose behind the legislation was not so much to increase revenue but to get back what was denied to government so far and ensure a healthy compliance environment with the law, said Mr Anandarajan.
More From This Section
On the question of black money generated domestically and in the country, the Mr Anandarajan said the legislation was with the Parliament and the separate law for this would come into force when it is passed by it. He recalled in answer to several questions that penalties envisages under the black money law were similar to penal actions stated in several other legislations also. If the affected party claims that he was not aware of an account opened by abroad, this could not be conceded.
As for foreign accounts held by non-residents while they were still residing India, non-disclosure would be an offence. But under the double taxation avoidance treaties with a large number of countries that India has, non-residents who pay tax in the country of their normal residence would be protected by these treaties. He also recalled that the Government had already issued two installments of clarifications on various questions posed by the public and was still open to assist where further clarifications were needed on the provisions, said Mr Anandarajan.
Mr D.S. Rawat, Secretary General, ASSOCHAM, the incarnation of the BMA with far reaching consequences (ranging from hefty penalty to prosecutions) may be fraught with administrative issue as the authorities who have been bestowed discretionary powers with little checks and balances may lack the comprehension and training for the judicious implementation and invocation of the BMA provisions. This is a concern in the Indian scenario where vexation subsist between the taxpayers and the tax administration, it may lead to peril of the taxpayers who may have further apprehensions about making disclosures and approaching the tax authorities.
The lack of facility of time to taxpayers may also go to buttress the point of politically motivated agenda of the government behind the BMA to showcase delivery on the promises made by the leaders, added Mr. Rawat.
The introduction of BMA may be with the good intention of tracking down and brining back wealth which legitimately belongs to the country, however a more conscious evaluation of the implementation mechanism, comprehensive drafting in conjunction with the facility of time to make disclosure under a more forbearing compliance regime would have helped attain the desired intention and greater acceptability, said Mr. Rawat.
Powered by Capital Market - Live News