Income Declaration Scheme’ (IDS) terminating on 30.09.2016 with 45-percent disclosure-tax is not likely to get much support for running unaccountable incomes in a tax-regime with highest tax-slab of just 30-percent.
However those having invested their unaccounted income in purchase of property in last some years for which assessment may be pending, may avail benefit of ISD scheme by declaring part of unaccounted investment to get rid of scrutiny etc.
However once time-limit for declarations under IDS is over on 30.09.2016, central government should consider a permanent Voluntary Declaration Scheme (VDS) whereby anyone desiring to disclose undisclosed income for any year may be able to do so by incorporating special
provision for such incomes in Income Tax returns.
It will automatically detect equal amount of tax-evasion especially in property-deals where those buying properties from undisclosed incomes will be automatically trapped when those selling will be declaring unaccounted cash received towards sale from property under ‘Income from undisclosed Sources’.
However investment of unaccounted money in gold can only be effectively checked when import of gold is allowed only through banks that too preferably public-sector banks.
Presently big importers of gold depute number of computer-operators for continuously printing cash-receipts of below rupees 20000 to make gold available for bulk investors of black money.
Perhaps both these steps of permanent VDS and allowing gold-import only through public-sector banks may permanently end parallel economy of black money.
SUBHASH CHANDRA AGRAWAL
1775 Kucha Lattushah
Dariba, Chandni Chowk
Delhi 110006 (India)