Black money declarations may touch Rs 80,000 crore; Rs 65,000 crore collected till 8PM

The “rush” of black money declarants, under the one-time compliance window, peaked across various Income Tax department offices on the last day on Friday. The Income Declaration Scheme (IDS) of the government is witnessing an overwhelming response. According to reports, till 8:00 PM on Friday, the total declaration crossed Rs 65,000 crore, a senior income-tax official said.

According to I-T department’s estimate, the total declarations could reach between Rs 70,000 crore and Rs 80,000 crore till 12AM.

Reports trickling in from across the country at the policy-making body of the department - CBDT - at North Block in the Finance Ministry said an increased number of “physical and online” declarations under the Income Declaration Scheme (IDS) are being reported since morning even as the collections are expected to go on steady till midnight when the deadline will end.

At the national capital’s two prominent I-T offices at Central Revenue building at ITO and at the Civic Centre near Connaught Place, people could be seen approaching the designated counters to submit their declarations under the IDS that closes on Friday.

Tax lawyers and CAs were seen making a declaration for their client based in the national capital at one of the I-T offices but refused to give out any information.

“The maximum declarations are coming and will come through the online mode as it ensures confidentiality.  However, the department does not want to leave any stone unturned in this regard and hence all the earmarked physical counters will be open till midnight as ordered by the CBDT,” a senior official said.

Top sources in the Finance Ministry said the scheme has turned out to be “very successful” and the results are expected to beat expectations and stipulated targets set in this regard.

While there is no official word about the collections, a number of senior I-T officials PTI spoke to said they are touching the Rs 40,000 crore-Rs 50,000 mark.

“We can surely say the collections under IDS have been very good. People have shown interest. However, we are not authorised to talk to the media and the government will make an announcement in this regard soon,” the officials said. Finance Minister Arun Jaitley will hold a press conference to declare IDS results at 3:00 PM on Saturday, they said. 

To make compliance under IDS more easy, the government had a few months back extended the deadline for payment of tax and penalty under the window. It had also allowed declarants to pay the amount in three installments by September 30 next year.

The first installment of 25 per cent under the IDS 2016 will have to be paid by November 2016, followed by another 25 per cent by March 31, 2017. The remaining amount will have to be paid to the exchequer by September 30, 2017.

Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30.

The scheme was announced by the government with an aim of bringing out black money from the domestic economy. The government had come out with a similar scheme for Indians holding undisclosed income abroad.

The scheme will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to financial year 2015-16 or earlier. The declarations can also be made online at the official e-filing portal of the department. The four-month IDS was opened on June 1.

(With inputs from PTI)