The Central Board of Direct Taxes has turned down requests from corporates for extension of impunity under the VDIS to cases under the Sales Tax and Excise Acts.
Corporates are hesitating to declare undisclosed income as it is not offering immunity against proceedings under sales tax and excise laws. As VDIS is a central government scheme, it cannot extend immunity in cases of violation of state laws.
The board has received several suggestions for the simplification of the scheme from individuals who want the scheme to be extended to all declarations made on income earned in the name of his children. This will permit him to avoid the gift tax incidence, when he bequeaths his earnings to his children.
The CBDT has, however, said that no more concessions will be granted. If a person has not decided to declare undisclosed incomes under the existing scheme, then it is unlikely that he will come forth to declare, whatever be the concession granted, CBDT sources said.
The government has also stated that immunity would not be available to disclosures made under the Narcotic Drugs and Psychotrophic Substances Act, 1985, Terrorists and Disruptive Activities (Prevention) Act, 1987 and Anti Corruption Act, 1988.
