Clauses of the Voluntary Disclosure of Income Scheme
- The amount disclosed by a person or an institution which may either be in the form of assets or cash would be applicable at the revised highest rate of tax.
- This clause was applicable to an individual located within or outside the country.
- Under the Income Tax action, immunity would be also granted.
- Interest would be waived off.
- Penalty would be waived off.
Voluntary Disclosure of Income Scheme
The National Development Council (NDC) meeting proposed the launch of the Voluntary Disclosure of Income Scheme. Then the planned budget was formulated in the year 1997-98 to commence the scheme. It was then launched as an effort to unearth black money. The main objective of the scheme was to harness the black money and use it for productive and useful activities.
The Voluntary Disclosure of Income Scheme, 1997 was able to net Rs 10,050 crore as additional revenue, on an undisclosed income of about Rs 33,000 crore, far exceeding the government expectations. The total number of declarants under the scheme was about 4,66,031. Thus about 4.66 lakh declarants had availed of the amnesty scheme which had helped in tapping a substantial chunk of the black money.