4-month window to disclose black money opens today

New Delhi, May 31

The four-month disclosure window giving an opportunity to domestic black money holders to come clean by paying tax and penalty of 45 per cent on such assets will open tomorrow.

People who have made money through corrupt means will not be allowed to take advantage of the disclosure window. Under the Income Declaration Scheme, persons making disclosure of unaccounted assets will be given time up to November 30 to pay taxes, penalty and surcharge totalling 45 per cent at the fair market value.

Finance Ministry officials have also held an online “talkathon” to spread awareness about the disclosure window.

The Central Board of Direct Taxes (CBDT) has come out with 14 frequently asked questions and a circular to explain the provisions of the income disclosure window. It has been clarified that the declaration made under the scheme will not be used against the declarants under the Income Tax Act or Wealth Tax (now abolished). There will also be immunity from Benami Transactions (Prohibition) Act.

The declarants will be liable for capital gains tax on sale of such assets in future. The scheme, however, will not apply in relation to prosecution of any offence punishable under the Prevention of Corruption Act, 1988. — PTI