VDIS scheme on disclosure of blackmoney in the offing

NEW DELHI: A special voluntary disclosure scheme for bringing back blackmoney stashed away in tax havens abroad may be in the offing.

The 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 blackmoney to the government.

The thinking in the government comes in the midst of a raging debate over unearthing blackmoney and illegal funds parked abroad.

The Ministry is considering the formulation of a such a scheme in the backdrop of India receiving fresh information under Tax Information Exchange Treaties (TIEAs), 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 blackmoney headed by the CBDT Chairman is expected to discuss and decide on the proposal during its proposed meeting later this month.