Jaitley offers black money holders 'one last chance'

Offering black money holders a last chance to come clean, Finance Minister Arun Jaitley has said information on assets disclosed during the one-time compliance window will not be shared with any other authority.
    

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 will 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 told reporters after the meet.
    

Black money holders who do not avail of the government's offer and continue to hide wealth will be shown "consequences" of 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 will 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."
    

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% 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% 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 the Income Tax Department may come out with a third set of clarifications on the scheme in form of frequently asked questions (FAQ) based on inputs from today'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." 

"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."

 

Prime Minister Narendra Modi had earlier this week warned that the black money holders to take advantage of the scheme or face action.
  

 

 "It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30," he said.
    
 

A total of ₹ 4,147 crore of undisclosed wealth was declared during the 90-day foreign black money compliance window that ended September 30. At 60% (30% tax and 30%penalty), the government got a net tax of ₹2,500 crore from the declarations.