Centre seeks to calm black money fears
The government has sought to assure industry that it would not
harass those who came forward with their undeclared income.
- In this regard, finance Minister Arun Jaitley recently held a meeting with industry leaders and chambers of commerce regarding the Income Declaration Scheme where he sought to assuage these concerns.
- He said the compliance window is open for people with undisclosed income to legitimise it by paying 45% tax between June 1 to September 30 and any declaration made under this law (the Income Declaration Scheme 2016) is protected and won’t be shared with any other authority.
Background:
The Income Declaration Scheme was announced by the Finance
Minister in his most recent Budget speech.
About the scheme:
The Income Declaration Scheme offers people with undisclosed
income to declare it by paying a penal tax rate of 45% on such income.
- An amendment in this regard was also recently moved in the Finance Bill, 2016. The Finance Bill has imported Section 138 of the Income Tax Act into the declaration scheme’s ambit. Bringing in Section 138 to the Scheme brings in objectivity on confidentiality of income tax information and the limitations thereof.
