Skip to main content

Taxmen send ‘last chance’ mails on undisclosed cash

By
Even as the last date of the income disclosure scheme (IDS) — a governmentprovided opportunity for those holding unaccounted money to come out clean — draws closer, the tax department has sent out mails exhorting people to make the most of it to avoid penal action.
The mails were addressed to people who have made large transactions or investments disproportionate to their sources of income, government officials said. The four-month compliance window under the IDS for voluntary disclosure of domestic black money ends on September 30. With just a few days left, the government is anxious to make it a success.
The tax department has sourced information on these people as well as their transactions from banks and property registration authorities across the states over the last six years. It reportedly has a list of more than 90 lakh non-PAN transactions.
“The letter is not intended to offend anybody. It does not even mention the transaction that led to its issuance. We have just advised citizens to pay taxes if they haven’t done so,” an official from the tax department said.
Banks regularly share data on transactions categorised as suspicious with the government. All cash transactions of ` 10 lakh or above are recorded, and investigation agencies notified.
The government has already issued a warning that those caught with black money after the expiry of the scheme will face stringent action, including imprisonment.
“The tax department has been sending mailers to many as a reminder, and it should not be taken otherwise… Once the scheme is over, those holding illegal money will land in trouble. Those who have erroneously received the mailers need not worry,” said Manoj Fadnis, former president, Institute of Chartered Accountants of India.
The Narendra Modi government had launched IDS-2016 on June 1 with a promise that no inquiry would be made into the source of undisclosed income and assets if they are declared voluntarily. Those wishing to avail this scheme would have to pay 30% tax, plus a penalty of 7.5% and a similar 7.5% surcharge – adding up to 45%.
Hindustan Times New Delhi,26th September 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more