Nobody would be spared after 30 September, warns Tax Authority on black money

People stacking black money have been warned that 30 September is the last day to inform the government about the non-taxed money. The government this time is much strict about black money and plans a sterner strategy.

If media reports are to be believed, The Central Board of Direct Taxes (CBDT) has details of tax evaders with them. The board is encouraging tax evaders to declare non-taxed assets under Income Disclosure Scheme (IDS) by this month end. This scheme was initiated on June 1 this year and lets tax evaders declare their wealth by paying 45% of the total tax. This would relieve them of any legal actions against them.

Finance Minister Arun Jaitley in his budget speech had declared IDS. "The capability of the tax department to detect tax evasion has improved because of enhanced access to information and availability of technology-driven analytical tools to process such information. I want to give an opportunity to the earlier noncompliant to move to the category of compliant.”

As per the tax authorities, seven lakh individuals and entities have been notified to come clean and post 30 September, nobody would be spared.

"We are now able to use even data sans the non-permanent account numbers (PAN)," the senior tax official told the Economic Times. The official further said that non-PAN transactions are being populated with PAN using information the department has and in some cases, taxpayers have been asked to come forward and give their PAN.

A law that restricts roads to circulate cash and park money is also underway. By 2018, most countries would have automated exchange that would make stashing cash overseas difficult.

Under the foreign black money scheme, 648 declarations were made worth Rs 4,164 crore that yielded a tax of Rs 2,476 crore.