Government will not extend September 30 deadline to disclose foreign assets

New Delhi: Government will not extend the deadline for income tax assesses to disclose unaccounted foreign assets abroad beyond September 30, which is the expiry date of the three-month compliance window to avoid punitive action, a senior tax official said today.

“It has been cleared that the date is not extending. Those who want to disclose (unaccounted foreign assets), need to disclose by this period. This has been the stance of the government from the very beginning. Now the compliance window is in the last stage, those who want to disclose can use the window,” V Anandarajan, Joint Secretary, Central Board of Direct Taxes (CBDT), said at an Assocham conference on black money. However, the official did not share what kind of response the three-month compliance window has received so far and did not provide the number of people who have come forward to declare their undisclosed foreign assets.

Anandarajan also clarified that when the black money is being assessed, no deduction or exemption would be allowed to those who declare such assets. Terming the new law as “very tough”, he said unlike the (Voluntary Disclosure of Income Scheme) VDIS law of 1997, it is not aimed at revenue generation.

“Altogether it’s a very tough law. Therefore, we have provided this window. This time around unlike the VDIS of 1997, it is not a revenue raising measure. “It is really an opportunity to come forward and make a declaration. And that window is closing,…only seven days are left,” he said.

Anandarajan also said the government will be liberal to the extent possible and there will be no witch hunting or fishing inquiries. “Those who want to make a declaration can make declaration. It is not to offer sops or anything but so long the window is open, we are going to be liberal with the Act as to the extent it allows us. "We have said no witch hunting, we have said no fishing inquiries. Whatever is declared we will accept at face value," he added.