By Remya Nair From Live Mint

The facility is available under the Black Money Act’s compliance window, which ends on 30 September
The government enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 to bring to task tax evaders who stash unaccounted wealth overseas and do not pay any tax on these assets and income. Photo: Bloomberg

New Delhi: Assuring confidentiality to taxpayers, the government on Monday said that the income tax department will not disclose the names of people who make voluntary disclosures under the Black Money Act’s compliance window, which ends on 30 September.

“The Supreme Court has observed in many cases that income tax returns are not subject to the RTI Act. The same will apply in this case also,” said revenue secretary Shaktikanta Das at a workshop on the Black Money Act, organised by the Institute of Chartered Accountants of India.

The government enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 to bring to task tax evaders who stash unaccounted wealth overseas and do not pay any tax on these assets and income.

The Act envisages a jail term and tax and penalties amounting to 120% of the value of the assets. But the government had introduced a three-month compliance window ending 30 September to give a chance to evaders to come clean.

However, industry is concerned about the confidentiality of information disclosed under the window and further harassment by the tax department based on the disclosures made.

“There will only be a need-based circulation of this information within the tax department. It will not be circulated far and wide. It will be limited to very few people. The commissioner designated to accept such returns will know and the board (Central Board of Direct Taxes) will monitor progress,” Das said. “The disclosures will be protected under section 138 of the Income Tax Act.” This section provides for confidentiality of information except when disclosure is in public interest.

Anita Kapur, chairperson of the Central Board of Direct Taxes, said the government will put out another set of frequently asked questions to clarify taxpayers’ doubts. She, however, defended the provisions of the Black Money Act.

“Why should the law not be harsh and stringent since it’s handling a problem that has persisted for so long. Soft laws are reflective of a soft state,” she said.

For more on this story go to: http://www.livemint.com/Politics/r8gQCUVFNJ7ek7eZSPgV7N/IT-department-not-to-disclose-voluntary-wealth-disclosures.html

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