It was this site that reported Is VDIS coming back this budget 2011-12? Media reports that the government is seriously considering the option of a voluntary disclosure scheme” for bringing back unaccounted money kept in banks abroad.VDIS was launched by the finance ministry domestically in 1997 and it helped the government increase revenue collections dramatically.
The proposal is considered Corporate India’s wish list to government , reportedly brought before Finance Minister on 1st August 2011 , with the argument that the funds brought back can be deployed towards financing infrastructure projects in the country.
An expert group on black money had, earlier, recommended that an offshore voluntary compliance scheme may be considered by the government so that taxes could be collected on such monies kept abroad in undisclosed accounts and the assets held by resident Indians abroad.
Voluntary disclosure schemes ( VDIS ) are currently available in many countries such as the US, the UK, Germany, France, Greece, Italy and Portugal.
Peek into VDIS scheem in offing
Under the new scheme, the government may not ask a person the source of the money, but criminal action would be taken if it is proved the money was earned though unlawful activities. As a member of the Financial Action Task Force, India cannot grant amnesty to people who collect black money as proceeds from crime.
The officials said if a minimum penalty was imposed, a person would still be able to save a portion of the unaccounted money kept abroad. Currently, a penalty of 100 to 300 per cent of the tax rate is levied on non-disclosure of overseas assets and income. So, if a penalty of 100 per cent is imposed on taxable income at 30 per cent, one would be able to retain 40 per cent of the money.