 "638 persons declare Rs 3,770 crore of black money under compliance window")
The government will get only Rs 2,262 crore from disclosures made under a three-month compliance window for unaccounted money abroad, which closed on Wednesday. Through the window, the government received 638 declarations of black money and assets abroad worth Rs 3,770 crore, according to a finance ministry statement.
A statement by the finance ministry said these were provisional figures.
The government will get 60 per cent of the value of these assets — 30 per cent as tax and 30 per cent as penalty. The finance ministry hasn’t termed the window an amnesty scheme, as it involves a penalty as well.
A sum of about Rs 2,000 crore is only a fraction of the figure of Rs 6,500 crore that Prime Minister Narendra Modi had said would come to the exchequer under the window. Subsequently, the finance ministry had clarified the amount referred to by the PM had come to the government through various investigations, after which information was revealed by countries with which India had double taxation avoidance agreements.
The previous amnesty scheme (of 1997) had seen the exchequer get about Rs 10,000 crore, despite 30 per cent tax and no penalty.
A statement by the finance ministry said these were provisional figures.
The government will get 60 per cent of the value of these assets — 30 per cent as tax and 30 per cent as penalty. The finance ministry hasn’t termed the window an amnesty scheme, as it involves a penalty as well.
A sum of about Rs 2,000 crore is only a fraction of the figure of Rs 6,500 crore that Prime Minister Narendra Modi had said would come to the exchequer under the window. Subsequently, the finance ministry had clarified the amount referred to by the PM had come to the government through various investigations, after which information was revealed by countries with which India had double taxation avoidance agreements.
The previous amnesty scheme (of 1997) had seen the exchequer get about Rs 10,000 crore, despite 30 per cent tax and no penalty.
“As expected, the compliance window for black money received a poor response. Lack of trust with respect to keeping the information strictly confidential, onerous disclosures and valuation rules and insufficient time given to taxpayers contributed to this,” said Amit Maheshwari, managing partner, Ashok Maheshwary & Associates.
On an average, each disclosure through this year’s window will yield Rs 5.9 crore. Those holding these assets have time till December 31 to pay the tax and penalty.
A finance ministry statement said the officer designated to receive the declarations worked till midnight on Wednesday. “The e-filing portal to receive declarations was also open till midnight,” it added.
After the closure of the compliance window, anyone found holding unaccounted money abroad will have to pay 120 per cent of the value of assets under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The ministry has said the compliance window isn't a measure to raise revenue, but an opportunity for those with undeclared money abroad to avoid prosecution under the unaccounted money law. To address concern over the law and the compliance window, the Central Board of Direct Taxes (CBDT) had issued two sets of frequently asked questions. It had cautioned failure to declare undisclosed foreign assets might result in forfeiture of assets under the Prevention of Money Laundering Act.
