Rs 2,428 crore flows into government via black money window

Government has collected a total of Rs 2,428.4 crore in taxes after over 600 black-money declarations were made to the Income Tax department through the one-time compliance window. 

There was a “shortfall” in collections under this category as in some cases there was prior information with the taxman which led to the disqualification of the declarations while some payments had come post the December deadline, it said. 

4164 cr and 644 declarations 

“A total of 644 declarations were made under the compliance window provided in the Act (new anti-black money law) which closed on September 30, 2015. The amount involved in these 644 declarations was Rs 4,164 crore. The declarants were liable to pay tax at the rate of 30 per cent and a like amount of 30 per cent by way of penalty on the value of assets declared by December 31, 2015. The amount received by way of tax and penalty upto December 31, 2015 is Rs 2,428.4 crore,” the statement said. 

Officials said there could be a chance that these figures could be further “reconciled” and collections may slightly go up as those payments could be added which came post the designated deadline of December 31. 

“The shortfall is primarily on account of certain declarations in respect of which there was prior information under the provisions of Double Taxation Avoidance Agreements (DTAAs) and Tax Information Exchange Agreements (TIEAs) or receipt of payment (was made) after December 31, 2015,” the statement said. 

The new law, called the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force with effect from July 1, 2015. The Act provided for a one-time compliance window to declare assets held abroad and pay due taxes and penalty on the value of assets declared. 

This window was provided by the government as just a one-time facility for stash holders to come clean before enforcing the stringent new law to curb and check the menace of black money or illegal assets held by Indians abroad. 

Entities who did not use the window and are later found to be in the possession of illegal assets or accounts abroad, will have to pay 120 per cent tax and penalty and face jail term which can extend up to 10 years.