Urging people to voluntarily declare their undisclosed income under the new compliance window for domestic black money, Minister of State of Finance Arjun Ram Meghwal on Monday stressed that the government’s intention is not to create fear.

“We don’t want to create an atmosphere of fear, but people must use the new compliance window,” he said at a event on the Income Declaration Scheme, 2016 at industry chamber PHDCCI, adding that he would ask income tax officials to maintain a positive attitude towards all those who use the scheme.

The four-month compliance window that started on June 1 allows people to declare their domestic black money by paying 45 per cent tax on it.

Meghwal also assured the industry members that the government would work on any other suggestion on the scheme, including concerns over its impact on declarations made under the Lokpal Bill.

“Let us know if there are any shortcomings in the scheme The government will hear all your suggestions with an open mind,” he said, noting that the Central Board of Direct Taxes (CBDT) has already issued a number of clarifications on the scheme and also accepted suggestions such as permitting the payment of taxes in three instalments. Meanwhile, addressing the event, Rani Singh Nair, Member, CBDT, warned that those who do not avail themselves of the scheme can be later prosecuted under the Benami Transactions (Prohibition) (Amendment) Bill.

“I hope the Bill will be passed in the Monsoon Session of Parliament. Tax evaders will find it difficult to suppress such income then,” she said.

Related Topics
comment COMMENT NOW