Tax drive offers ‘no absolution’, to yield little cash for Centre

New Delhi, September 28

But, as the four-month campaign draws to a close this week, there looks to be few takers despite a high-profile warning that this is the last chance for tax dodgers to come clean.

Officials privately acknowledge they are likely to miss their internal goal to raise about Rs 500 billion by a wide margin, though there is no public target. Disclosures up to mid-September would be enough to generate around $1.5 billion in extra tax, said an auditor who advises the government on tax policy.

Many entrepreneurs aren’t so keen on a scheme that offers little relief: they would have to pay 45 per cent in back tax and penalties, and even then would not be sure of keeping the taxman off their back.

One auditor cited the case of a real estate firm in Mumbai that was investigated by the Enforcement Directorate after disclosing assets under the Income Declaration Scheme that ends on September 30. "It's better to take sleeping pills than declare assets," the auditor said.

Finance Ministry officials said information received under the scheme was not shared with any other agency. The government is playing tough, saying tax evaders who pass up this chance would face harsher penalties - up to 35 per cent tax and a 90 per cent fine - and up to seven years in prison if they are subsequently found out.

But distrust between businesses that often operate in the shadows and authorities that practice what even Finance Minister Arun Jaitley has called "tax terrorism" is hampering the drive.

A businessman in Noida said he had wanted to sell a flat to help pay nearly Rs 4.5 million in tax and penalties under this scheme. But no buyer was willing to pay the price, which was less than half what the businessman paid two years ago, on fears they too could face scrutiny. His tax adviser told him to hold off. "There is nothing to fear," the adviser recalled telling the businessman. "We will handle this when the tax official comes to your door." Both requested anonymity, concerned they could draw the attention of the authorities. — Reuters

IDS counters to remain open till midnight on Sept 30

Chandigarh: With two days remaining for the black money disclosure scheme to close, the Central Board of Direct Taxes has directed its principal commissioners to keep counters open till midnight on September 30 for receiving physical declarations. In a press release, it has stated that declarations can be made online as well in printed copies of the prescribed form up to midnight on September 30. The Income Declaration Scheme, came into effect from June 1, 2016, provides an opportunity to the persons who have not paid full taxes in the past to declare their undisclosed income and assets. The possibilities of extending the deadline have already been ruled out by the authorities. TNS

Promote tax settlement scheme, officers told

Aimed at reducing litigation, the Central Board of Direct Taxes has asked its officers to proactively encourage assessees to take advantage of the one-time tax dispute resolution scheme, which ends on December 31. The move is aimed at improving awareness of the Direct Tax Dispute Resolution Scheme among the asssessees whose cases are pending before the Commissioner (Appeal). PTI

PM for speedy resolution of taxpayers’ problems 

Prime Minister Narendra Modi on Wednesday voiced concern over the large number of grievances being expressed by taxpayers and directed officials concerned to ensure speedy resolution of the issues, including through use of technology. The issue came up during the monthly meeting of PRAGATI, an ICT- based multi-modal platform for reviewing progress of projects and other matters through the PM’s direct interaction with top officials of the states. PTI