FM asks black money holders to come clean by Sept 30

Jaitley, who met industry chambers, CAs and tax professionals to clear any misgivings about the four-month compliance window provided to domestic black money holders to pay their taxes and escape harsher penalties, said there would be no extension of the scheme.

“People, who have (undisclosed) income and have stayed outside the income tax net, this is the last chance to declare them and sleep peacefully,” he said.   Black money holders, who do not avail of the government’s offer and continue to hide wealth will be shown “consequences” for doing so, he said. “There is a... (new black money law) and whosoever comes within its purview will be told about consequences (of holding black money),” he said.

The minister said any declaration made under the law would be protected. “That information is not to be shared with any other authority. It won’t be made public, it won't be shared with anybody,” he added. 

The Income Declaration Scheme or IDS, which opened on June 1, allows domestic black money holders to declare ill-gotten wealth, pay a total of 45 per cent in tax and penalty and escape prosecution.

“The compliance will remain open from June 1 to September 30 and people, who have such (undisclosed) income, which has not come under assessment they can disclose such incomes and legitimise by paying 45 per cent tax and penalty,” he said.

The meeting called to popularise the scheme and get best results, was also attended by Commerce and Industry Minister Nirmala Sitharaman, Power and Coal Minister Piyush Goyal, Oil Minister Dharmendra Pradhan and Minister of State in Prime Minister’s Office Jitender Singh.

“This is not an immunity scheme. Immunity scheme is one where there is no penalty. In IDS there is penalty,” Jaitley said, adding that the Income Tax Department might come out with a third set of clarifications on the scheme in the form of frequently asked questions (FAQ) based on inputs from Tuesday’s meeting.

The trade bodies, he said, have suggested that the tax should be allowed to be paid in installments. “We will consider this and we will come out with FAQs,” he said. 

The minister added: “We have nothing to do with any investigation under any law, but any declaration made under this law is protected. That information is not shared with any other authority. It won’t be made public, it won’t be shared with anybody.” 

Jaitley said, “In such disclosures, we do not ask for source of income and no enquiry takes place.” 

The meeting was called by the Revenue Department as well as the Central Board of Direct Taxes (CBDT) with industry chambers, trade bodies, CAs and tax professionals to discuss the income disclosure scheme.

“We are taking this as a campaign, as a mission mode and the professional bodies and trade organisations, we have taken their suggestions. We will come out with a third FAQ. We expect that anyone who has such income they disclose it and legitimise their income and assets,” he said.

Government ministers as well as CBDT officials will be travelling throughout the country to educate people about the scheme, so that maximum number of people avail of it, he said.