[New Delhi]Centre Unearthed Black Money Rs 44K CrAnd Treasured Rs 2475 Cr Tax Panelty
Undisclosed income of Rs 43,829 crore, both from domestic and foreign sources, has been detected by government in the last two financial years,This was informed in Parliament today.
“The amount received under the one-time compliance window, as part of enforcement measures during the last two financial years, searches in 990 groups of assessees and surveys in 9,457 cases were conducted, resulting in detection of undisclosed income of Rs 43,829 crores,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to Rajya Sabha.
Kumar said the Black Money (Undisclosed Foreign Income and Assets) and imposition of Tax Act, 2015 enacted on May 26, 2015 provided a one-time compliance window for declaration of undisclosed foreign assets.
“An amount of Rs 2,476 crores was received as tax and penalty from 648 declarants under the said window,” Gangwar said.
Besides, the Finance Act, 2016 provides for the Income Declaration Scheme 2016.
He added The scheme has commenced from June 1, 2016 and will close on September 30, 2016,
Tag: Black Money Declarants
Centre Unearthed Black Money Rs 44 K Cr& Treasured Rs 2475 Cr Tax Panelty
Black Money Declarants To Pay Tax From White Money Only
[New Delhi] Black Money Declarants To Pay Tax From White Money Only
Declarants cannot pay tax from undeclared income
The government on Thursday clarified that black money declarants using the one-time compliance window cannot pay tax and penalty from undisclosed income to bring down their liability and such acts will not get any immunity.
The Income Tax Department on Thursday came out with a fourth set of clarifications on the Income Declaration Scheme (IDS) on queries seeking to know if payment under the Scheme can be made out of the undisclosed income without including the same in the income declared, which would bring down the effective rate of tax, surcharge and penalty payable to around 31 per cent from 45 per cent.
The clarification in the form of frequently asked questions (FAQs) stated that there is no intent to “modify or alter the rate of tax, surcharge and penalty payable under the Scheme which have been clearly specified in the Scheme itself”.
It said further “Sections 184 & 185 of the Finance Act, 2016 unambiguously provide for payment of tax, surcharge and penalty at the rate of 45 per cent of undisclosed income”.
It offered an illustration:
A person declares Rs 100 lakh as the undisclosed income… as on June 1, 2016, but pays tax, surcharge and penalty of Rs 45 lakh (30 lakh + 7.5 lakh + 7.5 lakh) on the same out of his other undisclosed income.
“In this case, the declarant will not get any immunity under the Scheme in respect of undisclosed income of Rs 45 lakh utilised for payment of tax, surcharge and penalty, but not included in the declaration filed under the Scheme,” it added.
To get immunity under the Scheme in respect of the entire undisclosed income of Rs 145 lakh in this case (Rs 100 lakh undisclosed income being declared and Rs 45 lakh being the payment made from the undisclosed income not declared), one has to pay tax, surcharge and penalty amounting to Rs 65.25 lakh, that is 45 per cent of Rs 145 lakh.
A four-month window starting from June 1 has been provided to persons holding undeclared income and assets to come clean by paying a tax of 30 per cent and interest and penalty of another 7.5 per cent each, totaling 45 per cent.
The window ends on September 30. .
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