Prime Minister Narendra Modi will next week hold a review meeting with the revenue department to take stock of the anti-black money drive post note ban and tax collected thereof, as also steps taken for the GST rollout. The May 2 meeting has been convened to review the work of revenue department under the finance ministry, with specific focus on taxation matters and initiatives against black money, official sources said. The meet, they said, will discuss disclosures made in the tax amnesty scheme announced after junking of old 500 and 1,000 rupee notes in November last year.
The revenue department would present a report card on not just the black money disclosed and tax collected thereof but also the ill-gotten wealth seized during searches and raids across the country. An update on notices sent to unusual bank deposits made post demonetisation would also be given, sources said, adding the meeting would review progress made in the anti-black money drive, called Operation Clean Money, and the tax amnesty scheme Pradhan Mantri Garib Kalyan Yojana (PMGKY). The meeting would also discuss the measures being planned by the tax department against tax evaders.
The review meeting follows tax, penalty and surcharge worth Rs 2,300 crore being collected via the tax amnesty scheme floated post demonetisation. The scheme, PMGKY, provided for payment of 50 per cent tax and penalty on unaccounted cash deposited in bank accounts post note ban. While, under the Income Disclosure Scheme (IDS) – the first domestic black money disclosure scheme last year – Rs 12,700 crore tax has been collected. Sources said the meeting would also review direct and indirect tax collection targets and steps to augment collections.
The Goods and Services Tax (GST), which is expected to be rolled out from July 1, is also likely to be discussed at the meeting, they said. The GST Council, headed by Union Finance Minister Arun Jaitley and his stat counterparts, has held 13 meetings and decided on the four-tier tax structure of 5, 12, 18 and 28 per cent. The crucial fitment of goods and services in the tax brackets is yet to be decided. The council will meet on May 18-19 and work out on the fitment.