The government is expected to receive Rs 14,700 crore, or 0.1 per cent of GDP this fiscal from the income declaration scheme (IDS), says a Nomura report.
“The government will raise Rs 147 billion, or 0.1 per cent of GDP (50 per cent of the total tax payable) in FY17 (year ending March 2017) and the rest in the next fiscal year,” according to the Japanese financial services major.
Income declaration scheme (IDS) 2016 provided an opportunity for people to disclose their hitherto undisclosed domestic income and assets. The window was open from June 1 to September 30, 2016. A declarant had to pay a tax of 45 per cent on the undisclosed income.
At the end of the scheme, cash and other assets worth Rs 65,200 crore (USD 9.8 billion, or 0.4 per cent of GDP) were reported, “which was more than we expected”, Nomura said.
At a 45 per cent tax rate, the government will earn Rs 29,400 crore (0.2 per cent of GDP) in additional revenues.
The total tax amount can be paid in three instalments: 25 per cent by November 30, 25 per cent by March 31, 2017 and the remaining 50 per cent by September 30 2017.
Hence, the government will raise Rs 14,700 crore or 0.1 per cent of GDP in FY17 and the rest in the next fiscal year, Nomura added.