Govt open to instalments in black money window

However, the deadline to disclose domestic black money won't be extended beyond September 30

The government may consider the industry demand of payment of taxes in instalment under the black money compliance scheme. However, the deadline to disclose domestic black money will not be extended beyond the four-month period, ending September 30.

"The demand has come from industry bodies and other groups of people, which the government is considering but that need not be announced immediately," Revenue Secretary Hasmukh Adhia told reporters in Mumbai.

The black money compliance scheme is in the form of a four-month window that remains open till September 30, allowing assessees to declare hitherto unaccounted money and assets by paying a tax of 45 per cent.

 

Adhia also warned black money holders of prosecution against attempts to pass off any undisclosed income of past as current year's income. He said asssessees will need to disclose the dates of past undisclosed transactions.

Adhia emphasised that the focus of the scheme was on declaration of tax and not to ascertain the source of income of individuals.

"We have already clarified through the frequently asked questions (FAQs) on the Central Board of Direct Taxes website that there would be no sharing of information with any other enforcement agencies (including Central Bureau of Investigation, Enforcement Directorate or Service Tax etc). The individual will be given immunity from prosecution under Benami Transaction (Prohibition) Act, Income Tax, and Wealth Tax acts," he added.

He noted that confidentiality was still a concern for the scheme and hence the Income Tax department was trying to increase efforts on the communication of the scheme.

He clarified that the "nature of income" column in the declaration form was not for the purpose of knowing the source of income. The column has been provided to ascertain if the asset was is movable or immovable.

Meanwhile, Adhia has also shared data of search and seizure which has gained a significant amount of undisclosed income in last two years. According to it, the I-T department found Rs 21,000 crore and Rs 22,000 crore of undisclosed income through search and seizure, respectively.

The Income Declaration Scheme 2016, which came into effect from June 1, 2016, is an opportunity for those taxpayers who haven't disclosed income or paid taxes thereon in the past. Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30 per cent, surcharge at 7.5 per cent and penalty at 7.5 per cent, which works out to a total of 45 per cent of the undisclosed income.