The Comptroller and Auditor General may audit the performance of the Income Declaration Scheme that concluded on September 30, PTI reported on Sunday. However, the auditor will not examine individual disclosures, a government official. According to the scheme, domestic black money holders could declare their undisclosed income, pay 45% tax and penalty, and escape prosecution.
“The information filed under the IDS is confidential,” the official said, adding that it will not be shared with any law enforcement agency or the Income Tax Department. On Saturday. Union Finance Minister Arun Jaitley said that 64,275 people had declared assets worth Rs 65,250 crore under the IDS. This means the government will earn close to Rs 30,000 crore after the imposition of tax and penalty. Jaitley said the money will go into the Consolidated Fund of India and will be used for social security purposes.
The CAG has also launched an audit of those entities who have claimed tax exemptions on agricultural income, reported The Times of India. It has written to the Union finance ministry for details on these entities as well as the exemptions granted to them. This move comes tax officials voiced concerns about the potential misuse of the exemption.
Separately, political parties and tax officials suggested the removal of the exemption and the imposition of tax after a certain amount, according to the report. Data with the finance ministry shows that nearly four lakh people were granted this particular exemption in 2013-’14.