Under the scheme in the making, the source of money will not have to be disclosed but criminal action would be taken if the assets or money stashed pertain to proceeds of crime
New Delhi: A special voluntary disclosure scheme for bringing back black money stashed away in tax havens abroad may be in the offing, reports PTI.
The Central Board of Direct Taxes (CBDT) is understood to be 'seriously considering' recommending to the government a scheme on the lines of the Voluntary Disclosure of Income Scheme (VDIS) announced in 1996 to tap funds lying abroad for productive use in India.
Sources said the issue gained momentum recently when captains of industry and business met finance minister Pranab Mukherjee and impressed on him the need for encouraging disclosure of unaccounted money kept in tax havens which could be used to fund infrastructure projects in the country.
A proposal for ushering in a similar scheme was proposed earlier by an expert group on black money to the government.
The thinking in the government comes in the midst of a raging debate over unearthing black money and illegal funds parked abroad.
The ministry is considering the formulation of such a scheme in the backdrop of India receiving fresh information under Tax Information Exchange Treaties (TIEAs), Double Tax Avoidance Agreement (DTAA) and the OECD automatic exchange route.
Under the scheme in the making, according to sources, the source of money will not have to be disclosed but criminal action would be taken if the assets or money stashed pertain to proceeds of crime.
Official sources said committee on black money headed by the CBDT chairman is expected to discuss and decide on the proposal during its proposed meeting later this month.
Incidentally, an expert group on black money had earlier suggested that an offshore voluntary scheme may be considered by the government to collect tax on undisclosed bank accounts and assets held by resident Indians abroad.
Experts on the subject said that such a scheme is prevalent and has been implemented in the US, UK, Germany, France, Greece, Italy and Portugal among others.
Sources said that now that the country's efforts to revive and implement the various tax treaties have started giving results, such a scheme could be operationalised as compared to the earlier practise where it was very difficult to obtain bank accounts and assets data of such a taxpayer.
The nitty-gritty of such a scheme and the amount of penalty, etc, on the disclosure of such funds stashed abroad could be worked at a later stage, the sources said.
The CBDT through the Income Tax (I-T) department has taken several measures in the recent past to update the article concerning exchange of information in existing DTAAs to specifically allow for exchange of banking information and information without domestic interest.
India has also decided to negotiate TIEAs with priority countries and jurisdictions.
In the last two years, India has concluded negotiation of 16 TIEAs, 18 new DTAAs and renegotiation of 21 existing DTAAs.
Magma Fincorp, nationally, had disbursed Rs5,415 crore in 2010-11 through its network of 172 offices across 21 states
Magma Fincorp said it plans to ramp up disbursements by another 50% in retail loans in Rajasthan during the current fiscal. The company disbursed Rs399 crore in the state. The company, nationally, had disbursed Rs5,415 crore in 2010-11 through its network of 172 offices across 21 states.
The company will continue with its focus on providing asset finance to the economically disenfranchised in Rajasthan and expect to further grow in the states, Magma Fincorp senior vice-president Sumit Mukherjee said.
The Kolkata-based company already has a footprint in the state with 12 offices and plans to add one more office in SriGanganagar in this fiscal.
"The company disbursed Rs399 crores in 2010-11, which was 50% higher than FY10. Tractor finance, Suvidha (refinance), car finance and commercial vehicle finance posted a healthy growth of 162%, 137%, 79% & 58%, respectively.
"The aggressive marketing strategy adopted by the company helped in attaining this phenomenal growth rate and played a major part in the market expansion drive for the company in this region," he said.
In the first quarter of the current financial year, the company has posted an overall growth of 68% in Rajasthan, compared to the corresponding period of the last financial year. Tractor finance, car finance, suvidha, commercial vehicle finance & construction equipment finance witnessed a growth of 124%, 94%, 86%, 66% and 53%, respectively.
"The primary sales of assets have witnessed robust growth in the past several quarters and we hope the same would continue. This augurs well for our business. With the development of infrastructure further, we hope our products will continue to do well as majority of them cater to the growth in rural and semi urban markets," Mukherjee said.
On Wednesday, Magma Fincorp ended 0.21% up at Rs72.60 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.47% to 16,709.60.
Taksheel Solutions’s IPO will close on 4th October
IT service provider Taksheel Solutions will launch its Rs80 crore initial public offering on 29th September. The price band for the issue has not been fixed yet.
The Hyderabad-based firm, which offers IT products and services to financial services and telecom companies, plans to use Rs22 crore from the IPO proceeds for acquiring firms in a similar line of business, chairman and managing director Pavan Kumar Kuchana said. The IPO will close on 4th October, he added. TSL, which intends to issue 5.5 million shares through a fresh issue, intends to use proceeds to set up two software development centres, acquisitions and other corporate purposes. PNB Investment Services, a unit of Punjab National Bank, is the book running lead manager.
The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).