The government needs to assure against any "witch-hunt" to make the compliance window under the new black money law a success and it's a "pity" that the people do not believe its credibility, HSBC's India head Naina Lal Kidwai has said.
Stating that the persons taking advantage of the compliance window will have to pay huge amounts and therefore, they need to be assured that they won't be "paraded like a wrongdoer and face litigation", Kidwai told PTI here.
Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, persons with unaccounted overseas assets can make use of the 90-day compliance window to come clean by paying 30 per cent tax and 30 per cent penalty. The window ends on September 30.
Those not declaring their undisclosed assets during this window will have to pay a penalty of 90 per cent along with 30 per cent tax and also face a jail term of up to 10 years.
Kidwai said there is a need to develop trust between the citizens and the government. "It is a pity actually that the credibility of our government is such that people don't believe it," she added.
"People should know that there is not going to be a witch-hunt, and if people aren't believing it, then they need to be told a hundred times that there won't be a witch-hunt," the top banker said.
Of late, British bank HSBC has been under the government scanner for allowing several Indians to operate accounts using the services of HSBC Geneva to hide untaxed assets.
Earlier, top industrialist Rahul Bajaj had expressed concerns that the black money law could be used to harass people.
However, former revenue secretary Shaktikanta Das recently tried to dispel fears, saying full confidentiality will be maintained on disclosures under the black money compliance window and only those who do not comply need to worry.
"Let us not create a false alarm. Those who have stashed money abroad and not declared them have a lot more to worry because we will start getting information under automatic exchange of information and FATCA. Those who file disclosure information need not worry," Das had said.
