Skip to main content

PMO keeping an eye on blackmoney scheme

By
The Prime Minister’s Office ( PMO) is monitoring the response to the four- month domestic black money disclosure scheme, reviewing weekly reports sent by the finance ministry.
“Prime Minister Narendra Modi is personally monitoring the ( response to) the domestic black money scheme, with weekly reports being sent to the PMO,” said a finance ministry official. The department of revenue is sending progress reports on declarations received and outreach measures to popularise the Income Declaration Scheme- 2016.
According to a finance ministry official, the declarations have indicated the scheme has seen a better response than the one for black money stashed abroad announced last year. The department, however, refused to divulge the number of declarations made so far.
“This is the first month and many declarations have already come in, unlike in the case of foreign black money last year when most declarations came in during the last month. But that was also because the number was small as it dealt only with NRIs ( non- resident Indians),” said the official.
The new scheme gives domestic taxpayers a chance to declare undisclosed income or assets and avail immunity from higher penalty and prosecution by paying tax and other charges at 45 per cent. This includes a tax rate of 30 per cent, besides Krishi Kalyan Cess and penalty of 7.5 per cent.
Modi had said in a radio address on Sunday: “ It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30.” As part of the outreach measures to popularise the scheme, state- run Air India’s boarding pass will also carry details of the scheme. It is looking at printing 500,000 boarding passes with details.
In a related development, Finance Minister Arun Jaitley will meet industry associations, chartered accountants and other professionals on Tuesday to clear doubts about the window.
Besides, the central board of direct taxes ( CBDT) will release a second round of frequently asked questions on the scheme on Tuesday, addressing key concerns. “ The second round of FAQs will address queries related to the benefits of making disclosures under the scheme and the immunities that they will get and the fact that the declarations will remain confidential,” said another official.
While those using the income declaration scheme will get immunity from prosecution under the Income Tax Act and Wealth Act, concerns persist over prosecution under indirect tax Acts. The department of revenue is of the view that no immunity could be extended from prosecution under service tax, excise or Customs Acts. “ We will clarify that it will not be possible,” said the official.
Business Standard New Delhi,28th June 2016

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more