IDS last chance for people to declare black money: Official

Mumbai, July 1 (IANS) Union Revenue Secretary Hasmukh Adhia on Friday reiterated that the four-month window under the income declaration scheme (IDS 2016) was the last chance for people to come clean on their unaccounted income as the scheme will not be extended, an official statement said.

"Adhia made it amply clear that this is a one-time opportunity and the window will not be extended beyond the four-month period, ending on September 30. He said this is a last chance for people to declare their unaccounted income, following which, the income tax department would initiate its own action,” said a finance ministry statement.

The revenue secretary was briefing the media here on the Income Declaration Scheme 2016, which started from June 1.

The government has assured complete confidentiality to those declaring their income under the scheme.

“No source will be asked and no further proceedings will be initiated against those availing of the opportunity to declare their hitherto undisclosed income under the scheme,” Adhia said reassuring that the information contained in the declaration will not be shared with any other law enforcement agency.

The IDS 2016 was announced by Finance Minister Arun Jaitley in the Union Budget 2016-17. It provides a compliance window for people to come clean by paying tax, penalty and surcharge of 45 per cent of fair market value latest by November 30, 2016.

Adhia said the government has received suggestions to extend the deadline for paying tax and provision to pay tax in instalments.

“These suggestions are being examined by the government and an appropriate decision would be taken in due course of time,” he said.

Central Board of Direct Taxes (CBDT) has posted a fresh set of FAQs (frequently asked questions) on the disclosure scheme on its website.

To a query on whether undisclosed income can be passed on as current income and tax paid at a lower 33 per cent rate, he said that it would amount to false verification and the assessee would be required to explain the source of income.

On the automatic exchange of information between Switzerland and India, Adhia said the pact will be made by the end of this year.

The agreement will enable India to receive all financial information about its residents, including bank accounts and balances, dividends and interest income from Switzerland from 2018.