The Karnataka circle of income tax department has raised close to Rs 4,000 crore so far (a majority of it coming from Bengaluru) from the Income Declaration Scheme (IDS), which expires on Friday. So far, the all-India figure has been pegged at Rs 35,000 crore.
Highly placed official sources in the Central Board of Direct Taxes told Bangalore Mirror that the Karnataka circle will cross Rs 4,000 crore by the end of this month.
This means, the state would have contributed more than 10 per cent to the country's total collection.
Tax declaration scheme nets Rs 1500 cr in TS, AP
The rich and famous in Telangana and Andhra have never been more worried. With just 48 hours to go to the deadline for the Income Declaration Scheme, a pet project of Narendra Modi to unearth black money stashed in the country, IT officials are piling on the pressure on them to come clean with their undisclosed income.
The source told media that more than Rs 1500 crore of undisclosed income has been unearthed so far in the two states.
WHAT IS IDS?
To bring out undisclosed income and assets, the Union government introduced the Income Declaration Scheme in June.It invited Indians with undeclared income and assets to come clean and pay a tax of 45 per cent. Once declared, the scheme gave them immunity from prosecution and inquiry.
The last one month saw a good turnout of taxpayers who declared their undisclosed benami properties under the scheme, all thanks to the new Cost Inflation Index (CII), introduced a few weeks ago.
The IDS gives immunity to benami property holders from the Benami Transaction (Prohibition) Act 1988, which empowers authorities to confiscate properties. The Act also allows for imprisonment of up to seven years.
The property cost indexation is all about fixing slabs for the respective financial years vis-a-vis the inflation, to arrive at a decent value for the property -a simple calculation is if a property is purchased 10 years ago for Rs 1 crore, the property cost now would have appreciated to nearly Rs 10 crore.
As per the IDS scheme, 45 per cent is the tax plus surcharge and penalty one has to pay to regularise hisher undisclosed property. Going by that rate, considering the property appreciation, 45 per cent will work out to be too heavy.So an index has been fixed to calculate the property price on which tax is paid.
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