Union finance minister Arun Jaitley has said that the central government's ambitious 'Income Declaration Scheme' (IDS) is for disclosure of unaccounted wealth and does not provide for waiver of tax or penalty amount.
Jaitley was speaking at an event organized to spread awareness about IDS at Gujarat University convention hall on Sunday. This was the first IDS awareness event undertaken by Jaitley in the country. "Unlike past schemes, under the IDS a taxpayer has to pay penalty and cannot ask for reassessment of earlier valuation. If we allow this, it will be putting a premium on dishonesty and also be unfair to honest taxpayers," Jaitley said.
The Centre had launched IDS last month to provide an opportunity for voluntary disclosure to those owning black money. Taxpayers availing the scheme will have to pay 45% tax (30% tax, 7.5% penalty and 7.5% krishi cess).
Under the scheme, assets will be assessed according to their market value on June 1, 2016. The disclosed income will get exemption from property tax and the person will not be questioned under income tax or property tax laws.
The Union finance minister said the first thing that the Modi government did was to implement the Supreme Court directive on black money and set up an SIT with two retired Supreme Court judges. "Our assessment in cases related to HSBC, Geneva and Liechtenstein are over as prosecution has been initiated. Moreover, with more information emerging from Panama Papers, the government is investigating further," Jaitley said. He added that under the voluntary disclosure scheme for offshore accounts on which the government had levied 40% tax, assets worth Rs 4,500 crore had been declared. "In whichever country I visit, I first ask about the tax structure and evasion rate. In many countries, tax evasion is unimaginable because of the stiff laws. In comparison, India's tax rates are very reasonable," Jaitley said. Top Comment
Jaitley is a pathological liar. How many Black Money Holders inside and outside the country has this government prosecuted? Zero, Zilch, Notta. He is just selling Cow Sh&it to Hindus. Brown American
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He added that in the future, it will be difficult to generate black money. "We have created a consensus among G-20 countries for sharing of information. These countries are responsible for 85% of the world economy," Jaitley said. He added that the Indian government would be able to get real-time information on remittances by 2017 as a result of the FATCA agreement signed with the US.
Gujarat chief minister Anandiben Patel was the chief guest at the event.