Failed expectations? Tax mop-up may decline in new amnesty scheme

1. Failed expectations? Tax mop-up may decline in new amnesty scheme Breaking News - The government might receive Rs 5,500 crore as tax by those declaring hitherto undisclosed in the amnesty scheme that closes next March. The government received Rs 6,800 crore as tax in a scheme that ended in September, lower than the initially expected Rs 7,500 crore. Those declaring unaccounted wealth till September were allowed to pay 25% of the tax amount in two instalments by November 30 and March 31 and 50% in a third instalment by September 30, 2017. Many evaders paid the entire tax due by using demonetisation Rs 500 and Rs 1,000 notes, an official said. “Many people have overpaid the first instalment. Some have even paid the full amount due, while others have paid 50% or 70%. They used this as an opportunity to discard their old notes,” the official added.

2. Those declaring undisclosed income in the previous scheme had to pay 45% of the declared amount as taxes, penalty and surcharge. Although the government earlier said it had verified disclosures of Rs 67,382 crore, declarations of over Rs 10,000 crore were cancelled. This was higher than the Rs 65,250 crore announced by the government a day after the scheme closed. “We are expecting a bit over Rs 12,000 crore from the income declaration scheme tax payment in the current financial year, lower than the Rs 15,000 crore expected earlier,” said another official. “Valid declarations stand somewhere around Rs 54,000 crore,” he added. Read More on- Latest News & Market News