Income Declaration Scheme: 9 Lakh Special Cases Prepared

New Delhi: The Central Board of Direct Taxes (CBDT) on Monday cautioned black money holders saying it has prepared a database of about "nine lakh pieces" of instances of high-value transactions whom it will soon "confront" during the ongoing one-time black money window scheme.

While talking to reporters here, CBDT Chairman Atulesh Jindal said all those people who have such untaxed assets and funds should come forward and make their declarations before it is too late to utilize the Income Declaration Scheme (IDS) that ends on September 30.

"A detailed exercise has been carried out and we have prepared a database of 9 lakh pieces of information (on cases of high-value and potential unreported cases)...it (database) has been prioritised. This is one area to tackle the tax evasion besides other enforcement measures. We will issue them (taxpayers) letters and confront them that we have information."

"We will certainly like to give them opportunity to come clean. People should avail this window. We want to say that we have this database and we will make them aware about this. The option is with them (to use the IDS or not)," Mr Jindal said.

He said over one lakh cases under this database relate to transactions of over Rs 1 crore.

The CBDT chief, to whom the Income Tax Department reports, called the IDS a one-time opportunity given to black money holders to come clean.

"The Finance Minister has clarified in all the meetings that this (IDS) is not an immunity scheme and any comparison with past disclosure schemes should not be done. We have tried to give an opportunity to those taxpayers to come clean, who, because of some reasons could not report their correct income in the past... just an opportunity has been given, just a window has been given," he said.

He said the Income Tax Department is "very very serious" about combating tax evasion.

"We have an extensive database of information collected from various sources which we are utilizing and we will utilize more effectively during the days to come," he said.

As part of the IDS exercise, CBDT recently clarified that black money declarants using the one-time compliance window cannot pay tax and penalty from undisclosed income to bring down their liability and such acts will not get any immunity.

The clarification in the form of fourth set of frequently asked questions (FAQs) stated that there is no intent to "modify or alter the rate of tax, surcharge and penalty payable under the Scheme which have been clearly specified in the Scheme itself".

Besides, the government has extended the deadline for payment of tax and penalty under IDS and allowed declarants to pay the amount in three instalments by September 30 next year.

The first instalment of 25 per cent under the IDS 2016 will have to be paid by November 2016 to be followed by another one of 25 per cent by March 31, 2017.

The remaining amount will have to be paid to the exchequer by September 30, 2017.

Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30 this year.