Income Disclosure Scheme to convert black money into white may be introduced

The Minister of State Shri Pankaj Chaudhary in the Ministry of Finance in a written reply to a question raised in Lok Sabha said, “Income Disclosure Scheme to convert black money into white may be introduced.”

Shri Gopal Chinnaya Shetty asked the following questions in Lok Sabha:-

(a) whether the Government had announced an Income Disclosure Scheme in November, 2016 to convert black money into white under which any person could disclose his black money with a penalty of 50 per cent;

(b) if so, the details of the amount of revenue the Government received under this scheme and details of schemes on which this amount was spent;

(c) whether the Government has any plan to introduce a scheme to convert the black money lying in the country into white with a certain penalty, so that the money received from the black money penalty can be used for the developmental work of the country;

(d) whether the Government has also received requests in this regard from public representatives in May, 2023;

(e) if so, the details thereof; and

(f) the action taken or likely to be taken by the Government in this regard?

Minister of State Shri Pankaj Chaudhary replied to such questions:-

(a) No such scheme was announced in November, 2016. However, Income Declaration Scheme, 2016 (IDS, 2016) was enacted through the Finance Act, 2016 and came into force on 01st June 2016. According to the provisions of the IDS,2016, any person could declare his/her undisclosed income by making the payment of taxes at 30% of the undisclosed income, surcharge (i.e., Krishi Kalyan Cess) at 25% of taxes payable and penalty at 25% of taxes payable. In total, undisclosed income could be declared by making the payment of 45% of the undisclosed amount under IDS,2016.

After Demonetization on 8th November 2016, Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY Scheme) was launched on 16th December 2016 to provide another opportunity to declare the undisclosed income by making the payment of taxes at 30% of the undisclosed income, surcharge at 33% of the taxes payable and penalty at 10% of the undisclosed income. In total, undisclosed income could be declared by making the payment of 50% of undisclosed income. Further, 25% of the undisclosed income was required to be invested in specific instruments with lock-in period of four years.

(b) Under IDS,2016 and PMGKY Scheme, the amount of revenue received are Rs. 23,672 Crores and Rs.2,474 Crores, respectively.

(c) There is no such proposal.

(d) (e) & (f) One proposal was received suggesting that this Scheme may again be introduced. Such proposals are examined as part of annual budgetary exercise.