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‘No tax waiver for revealing unlawful assets’

Under the IDS, a taxpayer has to pay fine and cannot ask for reconsideration of earlier valuation, says Jaitley

Policy Pulse
Publish Date: Jul 11 2016 9:36AM | Updated Date: Jul 11 2016 9:36AM

‘No tax waiver for revealing unlawful assets’

 Finance minister Arun Jaitley has said that Centre’s  'Income Declaration Scheme' (IDS) is for disclosure of unrevealing wealth and does not provide for disclaimer of tax or penalty amount.

 
While speaking at an event in Ahmedabad, he said that unlike in the past, under the IDS a taxpayer has to pay fine and cannot ask for reconsideration of earlier valuation
 
If this is allowed, it will be putting a premium on dishonesty and also be unfair to honest taxpayers, he added.
 
The government had launched IDS in June  to give an opportunity for voluntary disclosure to those owning black money. Taxpayers taking advantage of scheme will have to pay 45% tax (30% tax, 7.5% penalty and 7.5% krishi cess).
 
Under this scheme, assets will be evaluated according to their market value on June 1 this year. 
 
Revealed income will get exception from property tax and the person will not be questioned under income tax or property tax laws.
 
He added that the first thing that the NDA Government did was to implement the Supreme Court order on black money and set up an SIT.