Seek clarification on black money scheme by May 25: Finance Ministry

By: | Published: May 12, 2016 9:41 PM

With the scheme for domestic black money holders to come clean by paying tax and penalty set to become operational from June 1, the Finance Ministry today asked public to seek clarifications on it by May 25.

Black moneyWith the scheme for domestic black money holders to come clean by paying tax and penalty set to become operational from June 1, the Finance Ministry today asked public to seek clarifications on it by May 25. (Reuters)

With the scheme for domestic black money holders to come clean by paying tax and penalty set to become operational from June 1, the Finance Ministry today asked public to seek clarifications on it by May 25.

The Income Declaration Scheme, 2016 provides opportunity to persons who have not paid full tax in the past to come forward and declare the undisclosed income and pay tax, surcharge and penalty totalling in all to 45 per cent of such undisclosed income so declared.

“The stake holders and general public are requested to bring out issues/points which in their opinion would require further clarification/guidance.

In his Budget speech, Finance Minister Arun Jaitley had said a four-month window would be provided for people to declare undisclosed income with an option to pay amount due within two months of declaration.

Disclosures made will be kept secret with addition of Sections 138 and 119 of the Income-tax Act in the scheme.

“The Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Bill 2016 and The Direct Tax Dispute Resolution Scheme 2016 incorporated as Chapter X of the Finance Bill 2016 are expected to come into force on the 1st of June, 2016 after the Finance Act 2016 receives the Presidential assent,” the Ministry said.

The Direct Tax Dispute Resolution Scheme is aimed to resolve cases pending in any Court, Tribunal, Arbitration or mediation under the Bilateral Investment Protection Agreement (BIPA).

The Finance Bill was approved by Parliament yesterday when the Rajya Sabha returned it after a brief discussion to the Lok Sabha.

These issues/points may be submitted by May 25 at ‘media.cbdt@gmail.com’ or by post to the Central Board of Direct Taxes.

Sanjay Kumar, Senior Advisor, Deloitte in India said the Direct Tax Dispute Resolution Scheme is the new avatar of the earlier scheme brought in in late 1990s, “evokes doubts about whether there will be enough takers, because many cases do not have very justified assessment orders – based on evidences, and the taxpayers in many cases may get full relief from the appellate authorities”.

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