Lok Sabha Question No. 2288 (UNSTARRED), answered on 2016-07-29
Subject: Income Disclosure Scheme
Ministry: FINANCE
Asked by: BIDYUT BARAN MAHATO, P.R. SUNDARAM, SUNIL BALIRAM GAIKWAD, RAKESH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, T. RADHAKRISHNAN, VIJAY KUMAR S.R., SUDHEER GUPTA, BOORA NARSAIAH GOUD, AJAY (TENI) MISRA, KAUSHALENDRA KUMAR

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION No.2288 TO BE ANSWERED ON FRIDAY, THE 29 TH  JULY, 2016

SHRAVANA 7, 1938 (SAKA)

## INCOME DISCLOSURE SCHEME

## 2288. SHRI BIDYUT BARAN MAHATO:

SHRI P.R. SUNDARAM:

DR. SUNIL BALIRAM GAIKWAD:

SHRI RAKESH SINGH:

SHRI GAJANAN KIRTIKAR:

SHRI T. RADHAKRISHNAN:

SHRI S.R. VIJAYAKUMAR:

SHRI SUDHEER GUPTA:

DR. BOORA NARSAIAH GOUD:

SHRI AJAY MISRA TENI:

SHRI KAUSHALENDRA KUMAR:

## Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  income  disclosure  schemes  and  programmes  made  thereunder  so  far thereon, scheme-wise along with new schemes introduced or proposed to be introduced, if any;
- (b) if so, the details thereof; and
- (c) whether the Government has data relating to the sector where black money has hidden, if  so,  the  details  thereof,  sector-wise  including  the  steps  taken/proposed  to  be  taken  by  the Government in this regard?

## ANSWER MINISTER OF STATE FOR FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

- (a) & (b): The details of voluntary disclosure of income schemes are as under:-

|   S. No. | Name of the scheme                                                                                 | Year                               | Income/ Wealth/ Assets declared (in Rs. Crore)                                     | Tax collected (in Rs. Crore)                                                       |
|----------|----------------------------------------------------------------------------------------------------|------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|        1 | VDS 1951                                                                                           | 1951                               | 70.2                                                                               | 10.89                                                                              |
|        2 | VDS 1965                                                                                           | 1965                               | 52.18                                                                              | 30.80                                                                              |
|        3 | VDS 1965 (No. 2)                                                                                   | 1965                               | 145                                                                                | 19.45                                                                              |
|        4 | Voluntary Disclosure of Income and Wealth Act, 1975                                                | 1975                               | 746.07 (Income) 844.72 (Wealth)                                                    | 249 (Income Tax) 7.7 (Wealth Tax)                                                  |
|        5 | Special Bearer Bonds (Immunities and Exemption) Act, 1981                                          | 1981                               | Bonds sold of the value of Rs. 964.25 Crore                                        | Bonds sold of the value of Rs. 964.25 Crore                                        |
|        6 | Disclosure Schemes through administrative circulars, 1985                                          | 1985 (November 1985 to March 1987) | 2940.37 (Income Tax) 7837.97 (Wealth Tax)                                          | 388.03 (Income Tax) 70.76 (Wealth Tax)                                             |
|        7 | National Housing Bank (Voluntary Deposits) Scheme, 1991                                            | 1991                               | Deposits of Rs.154 Crore received                                                  | Deposits of Rs.154 Crore received                                                  |
|        8 | Remittances in foreign exchange (Immunities) Scheme, 1991 and India Development Bonds Scheme, 1991 | 1991                               | Foreign exchange equivalent to Rs.6400 Crore was collected under these two Schemes | Foreign exchange equivalent to Rs.6400 Crore was collected under these two Schemes |
|        9 | Voluntary Disclosure of Income Scheme, 1997                                                        | 1997                               | 33289                                                                              | 9745                                                                               |

(c)  Sectoral analysis in respect of admission of undisclosed income during searches conducted by the Income Tax Department in the financial year 2015-16 indicates that the main sectors are manufacturing (31%), real estate (29%), trading (8%), educational institutions (7%), contractors (6%), services (5%), gems & jewellery (4%) etc.

The Government has taken several  steps to  effectively  tackle  the  issue  of  black  money.  Such measures  include  policy-level  initiatives,  more  effective  enforcement  action  on  the  ground, putting  in  place  robust  legislative  and  administrative  frameworks,  systems  and  processes  with due focus on capacity building and integration of information and its mining through increasing use of information technology. Recent major initiatives in this regard include -(i) Constitution of  the  Special  Investigation  Team  (SIT)  on  Black  Money  under  Chairmanship  and  ViceChairmanship of two former Judges of Hon'ble Supreme  Court, (ii) Enactment of a comprehensive  law -' The  Black  Money  (Undisclosed  Foreign  Income  and  Assets)  and Imposition of Tax Act, 2015 ' which has come into force w.e.f. 01.07.2015 to specifically and more effectively deal with the issue of black money stashed away abroad, (iii)  Constitution of Multi-Agency Group (MAG) consisting of officers of Central Board of Direct Taxes (CBDT), Reserve  Bank  of  India  (RBI),  Enforcement  Directorate  (ED)  and  Financial  Intelligence  Unit (FIU) for investigation  of  recent  revelations  in  Panama  paper  leaks,  (iv)  Proactively  engaging with  foreign  governments  with  a  view  to  facilitate  and  enhance  the  exchange  of  information under Double Taxation Avoidance Agreements (DTAAs)/Tax Information Exchange Agreements (TIEAs)/Multilateral Conventions, (v) While focusing upon non-intrusive measures, due  emphasis  on  enforcement  measures  in  high  impact  cases  with  a  view  to  prosecute  the offenders at the earliest for credible deterrence against tax evasion/black money, (vi) Proactively furthering  global  efforts  to  combat  tax  evasion/black  money, inter  alia , by  joining  the Multilateral Competent Authority Agreement in respect of Automatic Exchange of Information (AEOI) and having information sharing arrangement with USA under its Foreign Account Tax Compliance Act (FATCA), (vii) Enabling attachment and confiscation of property equivalent in value held within the country  where the property/proceeds of crime is taken or held outside the country by amending the Prevention of Money-laundering Act, 2002 through the Finance Act, 2015,  (viii)  Introduction  of  the  Benami  Transactions  (Prohibition)  Amendment  Bill,  2015  to amend  the  Benami  Transactions  (Prohibition)  Act,  1988  with  a  view  to,  inter  alia,  enable confiscation of Benami property and provide for prosecution, (ix) Initiation of the information technology  based  'Project  Insight'  by  the  Income  Tax  Department  for  strengthening  the  non -intrusive information driven approach for improving tax compliance and effective utilization of available  information,  (x)  Legislative  measures  including  amendments  in  the  Income-tax  Act, 1961.

These measures have equipped the Government better in curbing the menace of black money.

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