Voluntary Disclosure Of Income Scheme

After days of paralysis, the Lok Sabha today transacted some business as Supplementary Demand for Grants was passed amid ruckus created by some Opposition parties which continued to attack the government over demonetisation issue.

As much as Rs 65,250 crore of undeclared assets were declared through 64,275 declarations through the one-time four-month compliance window provided under the Income Disclosure Scheme (IDS) that ended on September 30.

For inhabitants of the dreary offices of Central Board of Direct Taxes or CBDT in the North Block of the cabinet secretariat in Delhi, it was an unusual night as officials summed up voluntary disclosures of unaccounted wealth or 'black money' made over the last four months.

Union finance minister Arun Jaitley on Tuesday said the Voluntary Disclosure of Income Scheme is not one that provides immunity from investigation. But he assured that those who do disclose their unreported income under it, will be given protection from investigative agencies other than the Income Tax Department.

Once a credible deterrence is in place, and the fear of incarceration and consequent loss of liberty and social opprobrium looms large for the rogue taxpayer, then there would be no need for any tax amnesty schemes in the future. And that would be a very good thing for honest tax payers and the tax department alike.

The 1997 budget is remembered for rationalisation of income and corporate taxes and the launch of a voluntary disclosure scheme for black money. It was the precursor of one of the biggest post-budget rallies in Indian stocks, with the Sensex rising over 9 per cent in just 15 days, Morgan Stanley's research shows.

After days of paralysis, the Lok Sabha today transacted some business as Supplementary Demand for Grants was passed amid ruckus created by some Opposition parties which continued to attack the government over demonetisation issue.

As much as Rs 65,250 crore of undeclared assets were declared through 64,275 declarations through the one-time four-month compliance window provided under the Income Disclosure Scheme (IDS) that ended on September 30.

For inhabitants of the dreary offices of Central Board of Direct Taxes or CBDT in the North Block of the cabinet secretariat in Delhi, it was an unusual night as officials summed up voluntary disclosures of unaccounted wealth or 'black money' made over the last four months.

Union finance minister Arun Jaitley on Tuesday said the Voluntary Disclosure of Income Scheme is not one that provides immunity from investigation. But he assured that those who do disclose their unreported income under it, will be given protection from investigative agencies other than the Income Tax Department.

Once a credible deterrence is in place, and the fear of incarceration and consequent loss of liberty and social opprobrium looms large for the rogue taxpayer, then there would be no need for any tax amnesty schemes in the future. And that would be a very good thing for honest tax payers and the tax department alike.

The 1997 budget is remembered for rationalisation of income and corporate taxes and the launch of a voluntary disclosure scheme for black money. It was the precursor of one of the biggest post-budget rallies in Indian stocks, with the Sensex rising over 9 per cent in just 15 days, Morgan Stanley's research shows.