• Wednesday, February 01, 2023

Business

Indians disclose $10 billion in hidden wealth in tax evasion amnesty

Arun Jaitley announced the success of the amnesty scheme

By: Eastern Eye Staff

A government amnesty targeting tax evasion in India has prompted tens of thousands of suspected tax dodgers to disclose nearly $10 billion (£7.7bn) in undeclared income, the finance minister said on Saturday (October 1).

The government of prime minister Narendra Modi sent out about 700,000 notices earlier this year to suspected evaders to coax them to declare hidden income and assets, known as “black money” in India. They were promised they would not be pursued by authorities if they came clean and paid a penalty.

Finance minister Arun Jaitley told reporters the four-month scheme that closed on Friday had led to 64,275 declarations, resulting in a provisional Rs 652.5bn (£7.6bn) in undisclosed wealth.

Jaitley added the final figure would likely be higher. Factoring in taxes owed and penalties of 45 per cent, the government could raise more than Rs 293.6bn (£3.4bn) from the declared income, according to calculations.

There was no public target for the initiative, but government officials had an internal goal to raise about $7.5bn (£5.8bn) in back taxes.

During the 2014 elections, Modi pledged to bring back billions of dollars in “black money” if elected. In a tweet, the prime minister called the outcome of the scheme “successful” and said it was “a great contribution towards transparency and growth of the economy”.

In a country of 1.3 billion, fewer than 18,000 people declared annual income of Rs 10 million or more in 2012/13, the latest figures show. (Reuters)

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