Business Other News 01 Mar 2016 New black money wind ...

New black money window not total amnesty scheme: CBDT

PTI
Published Mar 1, 2016, 7:17 pm IST
Updated Mar 1, 2016, 7:17 pm IST
The rationale behind announcing the new scheme in the Budget to get black funds taxed.
The scheme entails a declarant to come clean by paying 30 per cent tax plus a penalty of 7.5 per cent and a similar percentage of surcharge.
 The scheme entails a declarant to come clean by paying 30 per cent tax plus a penalty of 7.5 per cent and a similar percentage of surcharge.

New Delhi: The new one-time compliance window for domestic black money holders is not a "total amnesty" scheme, CBDT said on March 1 making it clear that declarations under it will enjoy immunity from prosecution except under the anti-corruption law, the anti-narcotics act and a few other legislations.

Describing the rationale behind announcing the new scheme in the Budget to get black funds taxed, CBDT Chairman Atulesh Jindal said the idea is "to cover those cases which have remained undetected so far" and thereby giving a chance to such people to come clean while also paying taxes with surcharge and penalty.

 

The CBDT boss said the new scheme cannot be called a "total amnesty" opportunity as it is for a "limited period" of time and declarants will stand to pay penalty and surcharge on the tax evaded. "World over, this type of compliance window is given to taxpayers. It is a normal phenomenon all over the world. It's not that we have not been able to reach them that this compliance window has been given," Jindal told PTI.

The CBDT boss assured declarants under this window, expected to go operational from June 1 for four months, will enjoy immunity from prosecution from all laws except the Prevention of Corruption Act and those mentioned in the Finance Bill.

 

"The detailed procedures and other things will be rolled out in the future, like we did during the earlier time (overseas black money compliance window)," he said.

Jindal added the information obtained by the taxman through this window will be strictly kept "confidential" like that was done during the one-time compliance window which was activated by the government last year for overseas stash holders.

"It's an opportunity given to taxpayers. Certain category of taxpayers have been excluded like where department has already issued notices or where search or seizure has taken place or where we already have information from abroad and all... these cases have been excluded," he said describing the modalities of the new window.

 

The scheme entails a declarant to come clean by paying 30 per cent tax plus a penalty of 7.5 per cent and a similar percentage of surcharge. He added the government has not announced this scheme keeping in mind "any targets" like the last such scheme that was enacted in 2015 after the introduction of the new anti- black money law.  

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Location: India, Delhi, New Delhi




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