More than Rs 65,000 crore disclosed under IDS, Rs 8,000 crore assessed out of HSBC list

250 references given to other countries in Panama Papers cases, investigation progressing at good pace: Jaitley

By: Express News Service | New Delhi | Updated: December 2, 2016 8:25 pm
black money, black money news, income tax, income tax last date, black money arun jaitley, black money declaration, hsbc , hsbc list, arun jaitley, income tax declaration, arun jaitley news, jaitley black money, india news, business news A total 64,275 declarants made disclosures of Rs 65,250 crore under the Income Declaration Scheme (IDS), Finance Minister Arun Jaitley told at a news conference.(AP Photo)

At least Rs 65,250 crore of undisclosed assets have been declared in the one-time compliance window, yielding Rs 29,362 crore in taxes, the government announced on Saturday. This is the biggest disclosure of black money in many decades of such schemes.

A total 64,275 declarants made disclosures of Rs 65,250 crore under the Income Declaration Scheme (IDS), Finance Minister Arun Jaitley told at a news conference. “Some disclosures have not been tabulated… This figure could be revised upward once the final tabulation is done,” he said.

WATCH VIDEO: Ahmedabad Businessman Under Scanner Who Declared Rs 13,000 Crore Under IDS

On the declarations compiled so far, the government will get Rs 29,362.5 crore in tax and penalty. Declarants can pay this amount in two instalments up to September 30, 2017. Half, or Rs 14,681.25 crore, will accrue in this fiscal.

The government had offered a one-time chance to holders of income and assets that had illegally escaped taxes, to come clean by paying a tax and penalty of 45 per cent. Last year, under a similar scheme for foreign black money holders, 644 declarations of undisclosed foreign income and assets were received, and just about Rs 2,428 crore was collected in taxes.

 

Jaitley also said the government was taking steps to deal with the names that have figured in the Panama Papers as well as the HSBC list, both of which were reported by The Indian Express as part of its global investigation into tax evasion carried out under the aegis of the International Consortium of Investigative Journalists (ICIJ).

“In Panama cases, 250 references have been given to other countries and investigation is progressing in good pace. People who figured in the HSBC list, about Rs 8,000 crore assessment have been completed. 164 prosecutions have been filed,” Jaitley said.

“The names which ICIJ had released, in that about Rs 5,000 crore detection has happened and 55 cases prosecution have been filed.”

Earlier this year, the Panama Papers named 500 people including film actors and industrialists who have allegedly stashed money in offshore entities. ICIJ had published lists of entities holding offshore accounts in 2013 and 2015.

“We will maintain secrecy of these declarations,” Jaitley said of the IDS declarations, adding that the tax would accrue to the Consolidated Fund of India, and would be used for public welfare.

A total tax of Rs 9,760 crore was collected under the Voluntary Disclosure of Income Scheme (VIDS) that was brought when P Chidambaram was finance minister in 1997. “In 1997, the tax collected was Rs 9,760 crore,” Jaitley said, pointing out that while IDS is not an amnesty scheme, VDIS provided blanket amnesty. Disclosures under IDS are taxed at the rate of 45 per cent while the effective rate of tax in the 1997 scheme was in single digit.

The government, he said, did not want to give a person who hasn’t paid tax easier terms than one who has been honest in paying taxes, and so a 50 per cent penalty on the 30 per cent tax was added.

“It (VDIS) was 30 per cent tax, but the value of asset was taken not for 1997, but for 1987. So the effective rate of tax was single digit rate of tax. And this is a 45 per cent rate of tax. So the two schemes are entirely different,” he said. “This kind of declaration is a positive step because more and more people in the higher tax income are wanting to become more and more tax compliant,” he said.

Asked what course of action the Income-Tax Department would take against those who held black money, but had not declared it in the four-month window, Jaitley said the Department had no intention of being vindictive, “but if the Department finds that there is an evasion somewhere, whatever normal activity they have to do they will do”.

The I-T Department had remained open until midnight on the last day to facilitate filings.

Between 1951 and 1997, 10 amnesty schemes were announced to declare unaccounted money, most of which were misused. Dishonest taxpayers got away in those schemes by paying lesser than normal taxes, with all immunities.

Only two of the past schemes were seen as successful: the income declared under amnesty circular 1985/86 was Rs 10,778 crore, and under VDIS, 1997, Rs 33,000 crore. But the real value of the assets declared was double the value considered for tax purposes. Taxes were paid at less than 50 per cent of the normal rate, with zero interest and penalties.

The Remittances of Foreign Exchange and Investment in Foreign Exchange Bond (Immunities & Exemption) Act, 1991 saw about Rs 2,200 crore of income being declared, with zero taxes payable.

The India Development Bonds, 1991, were also issued under this scheme, with subscribers enjoying immunity from declaring the source of income. They got 9 per cent tax-free interest on the 5-year bond.

IDS 2016 provided opportunity to undeclared wealth holders to escape prosecution by paying 45 per cent tax, including a penalty of 7.5 per cent and surcharge of 7.5 per cent.

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    IML sood
    Oct 1, 2016 at 6:31 pm
    This gutter pig 'MP' a declared Pagal always available with his useless ranting justifying the proverb 'little knowledge is a dangerous thing'. Like a mad dog,this Aaptard roaming here and there trying to scare others but not visualising the end of a mad dog.
    Reply
    1. S
      Satendra kumar
      Oct 1, 2016 at 8:25 pm
      The black money transaction and tax evasion are major concern for Indian government this new laws harsh penalties will make harder for companies shareholders individual account holders to make illegal activities in banking industries.
      Reply
      1. S
        sunny
        Oct 1, 2016 at 4:23 pm
        only on papers when money comes to india than talk 30 months bjp is in power not a single promises as been fullfield up till now economy is at its worst retail sector is gone ask store keeper of mumbai delhi punjab all are cursing bjp difference between community as increased dalits muslims patels are insecured
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          andy
          Oct 1, 2016 at 11:32 pm
          catch the big fish. big netas like sonia rahul chiddu sibal lalluji mullayam mayawatti. then you will get the right amount. all you have to do check google and find india politicians black money in swiss banks
          Reply
          1. J
            James Bond
            Oct 2, 2016 at 6:31 am
            Sir, catch the big fishes first. don't trouble normal people. You are not elected to do this.They are working hard and earning money as compared to netas who "bribe". Don't call undisclosed amount by normal people as black money, because they have "earned" it and not stole or bribed it.
            Reply
            1. S
              shailendra
              Oct 1, 2016 at 4:43 pm
              Does anybody remember the name of the Man who first released the names on the HSBC list in 2012 ?
              Reply
              1. s
                sasidharan k.p
                Oct 1, 2016 at 3:45 pm
                Congress mukth, black money mukth India is the need of the hour.
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                  mumbikar
                  Oct 1, 2016 at 9:37 pm
                  a drop in the ocean !!!!! how many of them who disclosed were jaitley's corporate friends and politicians ?
                  Reply
                  1. M
                    Mayur Panghaal
                    Oct 1, 2016 at 6:21 pm
                    Dont forget the lie feku told from Red fort...and actual figures discovered later.lt;br/gt;This guy is a natural born feku.
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                      Mayur Panghaal
                      Oct 1, 2016 at 6:13 pm
                      How does feku know who made money from crime,corruption,black marketing,smuggling,extortion,drugs,murder etc ??lt;br/gt;Bolo feku !!!
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                        Mayur Panghaal
                        Oct 1, 2016 at 6:13 pm
                        Knowing Feku....ill wait until chickens hatch.These are mere declarations...and payments have to be made before 2018.Feku fooled before from Red Fort ..then with Jan dhan zero balance accounts...then with GDP..then with coal auction figures...lt;br/gt;Cant trust this fellow...Criminal mind.
                        Reply
                        1. M
                          Mayur Panghaal
                          Oct 1, 2016 at 6:20 pm
                          These are only Declarations...and not actual money received.lt;br/gt;The declarations have 1 more year to make payment.lt;br/gt;Later it will be revealed that only 50% or 10% of declarants actually made payment.lt;br/gt;Old Modus opei of feku..just like coal mine auctions.
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                            Andrew Mohan Charles
                            Oct 2, 2016 at 4:20 am
                            When is Modiji going to go out on frequent flier miles to calm the guys who already got the shakes? Have our political parties entered the laundry and come out pressed and dry?
                            Reply
                            1. P
                              pgb
                              Oct 1, 2016 at 6:01 pm
                              Where is the swiss money?
                              Reply
                              1. P
                                Prakash
                                Oct 1, 2016 at 6:11 pm
                                .lt;br/gt;lt;br/gt;1997 GDP was about $ 427 Billionlt;br/gt;Chidambaram collected 33,000 crores and collected 9700 crores in taxes.lt;br/gt;lt;br/gt;2016 our GDP is $2.5 Trillion.lt;br/gt;lt;br/gt;Which is 5 times that of 1997.lt;br/gt;lt;br/gt;So how much should we be collecting? lt;br/gt;lt;br/gt;This govt is only working to fool Indians day in day out.lt;br/gt;lt;br/gt;But for few dymb bhakts, majority india is not fooled by this gimmicks.lt;br/gt;lt;br/gt;.
                                Reply
                                1. P
                                  prasanna
                                  Oct 1, 2016 at 7:30 pm
                                  u r not to bl ame but u r mothe r who taught u this fil thy language
                                  Reply
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                                    PRAVIN S
                                    Oct 1, 2016 at 4:02 pm
                                    What about panama papers – if prosecuted – majority ch addis including Big ? wl go to jail like rajat gu pta lt;br/gt;To cover panama and their own people this is trozan horse to fool aam admi
                                    Reply
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                                      PRAVIN S
                                      Oct 1, 2016 at 7:20 pm
                                      To know gutt er u have to be in g utter – from when u r living in gut t er
                                      Reply
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                                        Samuel
                                        Oct 2, 2016 at 5:08 am
                                        Publish the list of these offenders, which can be obtained by RTI act,
                                        Reply
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                                          vinod
                                          Oct 2, 2016 at 6:01 am
                                          In these days of high technology and usage of swift money transfers through banking channels, through Cards etc., there is no need of currency of higher denominations such as hundred, five hundred and thousand. Just demonetize these currencies.Black money dies its natural death.
                                          Reply
                                          1. Y
                                            yogesh
                                            Oct 1, 2016 at 4:54 pm
                                            UP YOURS
                                            Reply
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