New Delhi: With the domestic black money window in operation for nearly a month now, CBDT is likely to issue a set of fresh FAQs in the light of numerous queries and representations like considering granting immunity to declarants from other fiscal laws and extending the deadline for payment of taxes till the end of the fiscal.
These queries, doubts and demands of the traders, businessmen and others were made known to Income Tax department officials who are holding multiple awareness campaigns and sessions across the country to popularise the one-time compliance window called the Income Declaration Scheme (IDS).
A high-level meeting to discuss these issues and challenges facing the IDS was held here this week under the chairmanship of Revenue Secretary Hasmukh Adhia where senior CBDT officials and various regional Principal Commissioners of Income Tax, nominated to receive declarations in this regard, participated via video conferencing.
During the city sessions, officials said, the trade bodies and their representatives told tax officials that the rate of penalty on the assets declared under IDS is "high" and it should be brought down from the stipulated 45 per cent to 40 per cent.
They also suggested that the valuation of the assets should be done on the basis of the year of acquisition of the untaxed asset, which is supposed to be declared under the IDS. IDS rules stipulate that the fair market value of the asset to be declared under the scheme will be as on June 1, 2016. It would be deemed to be the undisclosed income.
The trade bodies and others have also sought immunity from proceedings under the Income Tax Act and the Wealth Tax Act in the IDS, from other financial laws like Companies Act, Excise Act, Service Tax laws, VAT laws and against action from market regulator SEBI once a person declares his black assets and funds under the IDS.
"They said they fear that once a person makes a declaration under the IDS, they will be visited by other tax collection agencies as the Acts that they enforce are not enlisted under the immunity section of the IDS," a senior official said.
