IDS details are furnished to public by the Indian union finance minister Arun Jaitley. As per Jaitley’s press conference, a total of 64,275 volunteer declarations have been made worth Rs. 65,250 crore. The date has ended by Sep 30th. He also stated that some of the disclosures are still under tabulation.
The income that will be generated from the declared undisclosed money would be Rs.29, 362.50 crore in the form of taxes and penalties.
A chance is given by the government for the declarants to pay their taxes or penalties in two installments. This fiscal year the government will receive nearly Rs.14, 681.25 crore and the next half in the coming fiscal year.
As per the IDS, by paying a tax and penalty of total 45% (30% tax + 7.5% penalty + 7.5% surcharge) of their undisclosed income, the black money holders can come out clean. Utilizing this many were expected, but only 15% of the black money holders came as volunteers and the 85% came due to the information and data collected by the Income Tax department. Hyderabad, Mumbai, Delhi cities topped the list of declerations.
Jaitley assured that International Consortium of Investigative Journalists (ICIJ) stated names in the Panama Papers as well as the HSBC list are also under the scanner. Around 250 references have been given to other countries and steps are being taken to investigate them too.
In 1997 a total tax of Rs.9,760 crore was collected with the introduction of Voluntary Disclosure of Income Scheme (VIDS). The finance minister P Chidambaram has announced the scheme.
Arun Jaitley also warned the undisclosed holders that a stringent action would be taken against them when caught. A total of 85% would be collected which constitutes 30% tax with an additional penalty of 50% from the hidden wealth.
Between the years 1951 to 1997, 10 amnesty schemes were announced to declare unaccounted money. They were misused mostly and did not fetch any fruitful results for the central government.
As far as the analysts think, this is the only third scheme that is successful in attaining the unaccounted money to a certain extent.