One-time short window for declaring assets abroad: Rev Secy

The government will give a one-time 'short window' to holders of blackmoney abroad to declare their wealth, pay taxes and penalty and escape prosecution under the proposed stringent law to deal with the menace.

Insisting that it is neither an amnesty nor a VDIS scheme, Revenue Secretary Shaktikanta Das said the only advantage under the scheme would be escape from prosecution. The source of income would have to be declared which would be throughly scrutinised.

"A one-time compliance window for a limited and short period of time will be given... The duration of short period will be worked out, will be specified in due course of time," he told PTI in an interview.

Das was elaborating upon Finance Minister Arun Jaitley's budget proposal to come out with a stringent law to deal with the black money stashed abroad.

He however refused to fix a timeframe of the window. Asked if the window may be for six months or a year, he said, "when I say short window, it means a short window."

Earlier, Minister of State for Finance Jayant Sinha had said the failure to unveil assets abroad would invite a rigorous jail term of up to seven years, while concealment of income and tax evasion would result in 10-year imprisonment.

These provisions will be part of a Bill that the government plans to bring in the current session of Parliament to check the black money menace.

On whether the government would provide a six months window to people having assets abroad to come clean, Das said "nobody from government has said so...people are speculating outside. All I would say is that there will be a compliance window."

Das further said that it would not be correct to call 'one-time short window' for disclosing overseas assets as any kind of amnesty or voluntary disclosure of income scheme (VDIS).
"Let me say very clearly with lot of emphasis this is not an amnesty scheme. This is not a VDIS kind of scheme which was there 1997-98.

"In amnesty scheme they (persons disclosing assets) just simply have to pay taxes. Here they will be required to pay the tax and pay the penalty and other charges. The only relief they will get is that they will not  be prosecuted...they will have to explain source of money. Source can not be proceed of a crime."

Announcing the scheme in his budget, Jaitley had said that the offences under the new law would be non-compoundable and the overseas account holder would also be required to mandatorily specify the date of opening of foreign account in the return of income.

Asked about the imprisonment provision in the proposed law, Das said concealment and/or non-disclosure of assets and income abroad will be liable to be punished by up to 10 year rigorous jail term.

Non-filing of returns or incomplete returns will lead to 7 years rigorous imprisonment, he said.
Asked what was the distinction between the two, he said the Bill that will be brought in the current session will address all the issues.

"Please, wait for the bill, all your questions and doubts will be cleared in that," he said.