No legal action on foreign money disclosure till 2017

Tribune News Service

New Delhi, March 5

Revenue Secretary Shaktikanta Das today said voluntary disclosure of unaccounted money stashed away overseas would involve no prosecution if its possessors come forward and make a honest declaration to the government till 2017 before the mechanism of automatic exchange of information comes into effect.

Addressing members of the PHD Chamber of Commerce and Industry, Das said holders of unaccounted money would have to pay penalties and interests accumulated on such money in order to escape legal prosecution.

The Finance Minister, according to the Revenue Secretary, would come out with stringent laws to deal with the black money menace in which there would be a compliance window for making such disclosures, but it would not be an amnesty scheme.

“It would be impossible for those who hold unaccounted money hidden in foreign banks to declare their income, even under normal circumstances, because the mechanism of automatic exchange of information will come into effect in 2017-18.The new mechanism will help the government conveniently unearth the money stashed away in foreign land,” he said.

On being asked if GST would become reality by April 1, 2016, Das said, “I am confident of it as a constitutional amendment to the GST is likely to be effected in the current session of Parliament. Committees and sub-committees have been formed by the Finance Department to handle the issues of CGST and SGST with a deadline prescribed for their logical conclusion.”

He said the Centre would continue to widen the service tax base because of the contribution of services to the GDP had gone close to 60 per cent whereas its contribution to taxes was not proportionate and more over taxing services by widening their basis in the subsequent Budget would be a good precursor to GST.