Come clean by Sept 30, PM tells tax evaders

The Government seems to be adopting a blow-hot, blow-cold attitude vis-à-vis tax defaulters. In a firm message, Prime Minister Narendra Modi on Sunday asked people to declare their undisclosed income by September 30, making it clear that this was the last chance to avoid problems that would follow after the window of opportunity closed.

The Prime Minister’s announcement, however, comes just a few days after tax authorities had clarified that they would not not go hammer and tongs against tax defaulters. Last Wednesday, the Central Board of Direct Taxes in a press statement had said that there were no plans to arrest wilful tax defaulters. However, upping the ante less than a week later, now Prime Minister Modi has asked 

people to make disclosures saying that no questions would be asked about the source of the undisclosed income or assets if the declaration was made voluntarily by September 30.

“For those having undisclosed income, the government has provided a special chance to declare it by September 30,” Modi said in his monthly radio programme Mann Ki Baat. He said by paying a penalty, those having undisclosed money can free themselves from various kinds of burden.

“I have promised that there will be no inquiry into the source of the undisclosed income and assets if the declaration is made voluntarily. That is why I am saying it is a good chance for becoming part of a transparent system,” he said.

“Let me tell the countrymen that this chance is till September 30. Consider this as the last chance,” the Prime Minister asserted during the programme. He said he had told BJP MPs that if anybody faced any problem after September 30 for not abiding by the rules, no help would be provided to them.

“It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30,” he said. Modi said there was a time when taxation rules were such that people would tend to avoid paying taxes.

“But gradually, times changed. Now, for a taxpayer, it is not too difficult to abide by government rules. Still, old habits die hard,” he said, adding there are still people who feel that it is better to avoid paying taxes. 

“My plea is that by running away from rules, we lose our peace. Any small person can harass us. Why should we let it happen? Why not ourselves give correct information to the government about our income, about our wealth? For once, dispose off the baggage of the past. I appeal to my countrymen to get free from this,” he said.

The Central Board of Direct Taxes, in a strategy paper for the current fiscal, has directed the tax department to use this provision, used rarely till now, stated under Section 276C (2) of the I-T Act that stipulates action to ensure rigorous imprisonment for a period between three months and three years which may also carry a fine. The I-T department has a designated official to execute these rare powers, called the Tax Recovery Officer (TRO) within its establishment.