GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

LOK SABHA

UNSTARRED QUESTION NO. 2951

TO BE ANSWERED ON MONDAY, AUGUST 07, 2023 / SRAVANA 16,1945 (SAKA)

INCOME DISCLOSURE SCHEME

2951. SHRI GOPAL CHINNAYA SHETTY:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government had announced an Income Disclosure Scheme in November, 2016

to convert black money into white under which any person could disclose his black money with

a penalty of 50 per cent;

(b) if so, the details of the amount of revenue the Government received under this scheme and

details of schemes on which this amount was spent;

lying in the country into white with a certain penalty, so that the money received from the black

money penalty can be used for the developmental work of the country;

(d) whether the Government has also received requests in this regard from public

representatives in May, 2023;

(e) if so, the details thereof; and

(f) the action taken or likely to be taken by the Government in this regard?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a) No such scheme was announced in November, 2016. However, Income Declaration

Scheme, 2016 (IDS, 2016) was enacted through the Finance Act, 2016 and came into force on

June 2016. According to the provisions of the IDS,2016, any person could declare his/her

undisclosed income by making the payment of taxes at 30% of the undisclosed income,

surcharge (i.e., Krishi Kalyan Cess) at 25% of taxes payable and penalty at 25% of taxes

payable. In total, undisclosed income could be declared by making the payment of 45% of the

undisclosed amount under IDS,2016.

After Demonetization on 8

November 2016, Taxation and Investment Regime for Pradhan

Mantri Garib Kalyan Yojana (PMGKY Scheme) was launched on 16

December 2016 to

provide another opportunity to declare the undisclosed income by making the payment of taxes

at 30% of the undisclosed income, surcharge at 33% of the taxes payable and penalty at 10%

of the undisclosed income. In total, undisclosed income could be declared by making the

payment of 50% of undisclosed income. Further, 25% of the undisclosed income was required

to be invested in specific instruments with lock-in period of four years.

(b) Under IDS,2016 and PMGKY Scheme, the amount of revenue received are Rs. 23,672

Crores and Rs.2,474 Crores, respectively.

In terms of Article 266 (1) of the Constitution of India, all revenues (tax/ non-tax etc.) received

by the Government of India are credited to the Consolidated Fund of India. Amount from

Consolidated Fund of India is utilized by obtaining necessary appropriation from Parliament

to meet various expenditures of the Government such as infrastructure development, health,

education and other welfare schemes, Grant-in-aid to State/ UT governments, interest payments

on loans taken by the Government etc.

(d) (e) & (f) One proposal was received suggesting that this Scheme may again be

introduced. Such proposals are examined as part of annual budgetary exercise.

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