Lok Sabha Question No. 2951 (UNSTARRED), answered on 2023-08-07
Subject: Income Disclosure Scheme
Ministry: FINANCE
Asked by: Gopal Chinayya Shetty

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 2951

TO BE ANSWERED ON MONDAY, AUGUST 07, 2023 / SRAVANA 16,1945 (SAKA)

## INCOME DISCLOSURE SCHEME

## 2951.  SHRI GOPAL CHINNAYA SHETTY:

Will the Minister of FINANCE be pleased to state:

- (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?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (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 01 st 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 8 th   November 2016, Taxation and Investment Regime for Pradhan Mantri  Garib  Kalyan Yojana  (PMGKY  Scheme)  was  launched  on  16 th 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.

In terms of Article 266 (1) of the Constitution of India, all revenues (tax/ non-tax etc.) received by the Government of India are credited to the Consolidated Fund of India. Amount from Consolidated Fund of India is utilized by obtaining necessary appropriation from Parliament to meet various expenditures of the Government such as infrastructure development, health, education and other welfare schemes, Grant-in-aid to State/ UT governments, interest payments on loans taken by the Government etc.

(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.

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