Blackmoney window: Fresh FAQs likely as new queries arise

New Delhi With the domestic black money window in operation for nearly a month now CBDT is likely to issue a set of fresh FAQs in the light of numerous queries and representations like considering granting immunity to declarants from other fiscal laws and extending the deadline for payment of taxes till the end of the fiscalThese queries doubts and demands of the traders businessmen and others were made known to Income Tax department officials who are holding multiple awareness campaigns and sessions across the country to popularise the onetime compliance window called the Income Declaration Scheme IDSA highlevel meeting to discuss these issues and challenges facing the IDS was held here this week under the chairmanship of Revenue Secretary Hasmukh Adhia where senior CBDT officials and various regional Principal Commissioners of Income Tax nominated to receive declarations in this regard participated via video conferencingDuring the city sessions officials said the trade bodies and their representatives told tax officials that the rate of penalty on the assets declared under IDS is high and it should be brought down from the stipulated 45 per cent to 40 per cent They also suggested that the valuation of the assets should be done on the basis of the year of acquisition of the untaxed asset which is supposed to be declared under the IDSIDS rules stipulate that the fair market value of the asset to be declared under the scheme will be as on June 1 2016 It would be deemed to be the undisclosed income The trade bodies and others have also sought immunity from proceedings under the Income Tax Act and the Wealth Tax Act in the IDS from other financial laws like Companies Act Excise Act Service Tax laws VAT laws and against action from market regulator SEBI once a person declares his black assets and funds under the IDSThey said they fear that once a person makes a declaration under the IDS they will be visited by other tax collection agencies as the Acts that they enforce are not enlisted under the immunity section of the IDS a senior official saidSome others have sought clarification with regard to the privacy and confidentiality clauses while some have sought more clarity on the procedures of declaration the official saidSome trade bodies want time for payment of taxes and penalties under the IDS to be extended upto March 31 2017 as against November 30 this year as they are facing liquidity issuesEach and every concern has been duly noted and discussed by the Department of Revenue It is expected that a fresh set of Frequently Asked Questions FAQs would be published by the Central Board of Direct Taxes like those were published when the fourmonth window got activated on June 1 the official saidThe official added that in order to ensure clarity on the issue of valuation of the asset under declaration the CBDT has recently published a list of registered valuers on its official web portalAn explanatory circular and first set of 14 FAQs were released by the CBDT in May well before the window got activated in JulyUnder the scheme income as declared by the eligible persons would be taxed at the rate of 45 per cent which is 30 per cent plus a Krishi Kalyan Cess of 25 per cent and a penalty at the rate of 25 per cent These taxes have to be paid by November 30 after the window closes in SeptemberThe scheme was announced by the government with an aim to pump out black money from the domestic economyEarlier government had come out with a similar scheme for Indians holding undisclosed income abroad and a total of Rs 4147 crore of undisclosed wealth was declared under itThe IDS will apply to undisclosed income whether in the form of investment in assets or otherwise pertaining to financial year 201516 or earlierDeclarations under IDS can either be made online on the official efiling website of the tax department or before various regional Principal Commissioners of IT department