Tax authorities won't be vindictive, will only detect evasion: Hasmukh Adhia, Revenue Secretary

After the black money declaration scheme, tax authorities would not be unnecessarily vindictive but carry out normal activity of detecting tax evasion, assures revenue secretary Hasmukh Adhia. He tells ET that the government has taken significant steps to address the issue of black money in the economy. The scheme closed on the night of September 30, yielding a disclosure of Rs 65,250 crore with likely tax mop up of Rs 29,000 crore. Edited Excerpts:

How would you term the response to the latest black money scheme? Is it line with your expectations?
Good. We did not start with any expectations so we cannot say it matches with what we expected. We were only trying to put in our best efforts.

Comparisons are being made with the response to the Indonesian tax amnesty scheme that has seen declarations worth $200 billion?
I have not studied the Indonesian scheme and don't know what the contours of the Indonesian scheme were. So it would be difficult for me to compare. It would depend on the contours of the scheme.

On hindsight, do you think the scheme could have been made more liberal?
I don't think we could have made it more liberal than what it was. A normal person pays 30% tax, with surcharge and cess that comes 33%. This leaves a gap of 12%. We have accommodated the request for more time for payment because they may have to sell their property.

We have given them extension of time period over which they can pay tax. If you take 9 months on average for payment, then that much of interest is saved. Once they make the declaration they can deposit the money in bank and start earning interest. That was also a kind of small relief element in the scheme.

Is this the last amnesty scheme for tax evaders?
I don't think we can commit on behalf of future governments. As far as this government is concerned, they have made it clear that this is the last scheme.

But I may also add that this was not an amnesty scheme. This scheme was for people to pay tax on income which has escaped assessment.

There is a lot of apprehensions among people that income tax authorities would get aggressive?
This question was also put to the Hon. Finance Minister in the recent press conference and he has made it clear that we would not be unnecessarily vindictive.

The department would carry out normal activity of detecting and penalising tax evasion.

What about concerns that declarants could face harassment on account of valuations…
We have already said we would not challenge the valuation. But the valuer would be responsible for it and if there is a serious case of gross undervaluation, the declarant would not face any action but the valuer would face action.

How far have we been able to address the issue of black money in our economy?
I would think very good efforts have been made in all aspects — legislative and administrative steps, international agreements, communication strategy, giving opportunity to come clean through both the black money schemes. We have taken significant steps.

Two of the key step is implementation of goods and services tax and measures to end cash economy.