Black money: Government to ensure there is no washing away of past sins

Finance Minister Arun Jaitley, in his Budget 2016, announced a black money amnesty window and now the government is making sure it is not misused by tax offenders who are already on the radar of the authorities.

The tax department will make sure that the window is not used by people who have already been red flagged by it.

The Income Declaration Scheme 2016 will also not be available if authorities have prior information about the claimant from another country under tax information-exchange treaties.

This scheme gives a limited-period compliance window from June 1 to September 30 to declare undisclosed income.

READ MORE: Here are 15 key reforms announced by FM to transform India

Tax authorities have launched a concerted campaign against evasion that has led to Rs 20,000 crore of undisclosed income being unearthed in the past few years.

"For the undisclosed foreign income or assets there is no period of limitation provided under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. But Income-Tax Act, 1961, contains the provisions of period of limitation, pegged at six years, beyond which tax authorities cannot raise any question," Kuldip Kumar, partner at PwC India, told ET.

(Image: Thinkstock)