Voluntary Disclosure of Income Scheme

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Voluntary Disclosure of Income Scheme
CountryIndia
Closed31 December 1997; 20 years ago (1997-12-31)

The Voluntary Disclosure of Income Scheme (VDIS) was a very unconventional but successful step among Indian economic policies. It would give an opportunity to the income tax or wealth tax defaulters to disclose their undisclosed income at the prevailing tax rates. This scheme would also ensure that the laws relating to economic offences would not be applicable for those defaulters. Over 350,000 people disclosed their income and assets under this scheme, which brought a revenue of 78 billion (US$1.1 billion) to the Indian finance ministry. The scheme was closed on 31 December 1997.

Palaniappan Chidambaram, then Union Finance Minister

Controversies[edit]

VDIS granted income-tax defaulters indefinite immunity from prosecution under the Foreign Exchange Regulation Act, 1973, the Income Tax Act, 1961, the Wealth Tax Act, 1957, and the Companies Act, 1956 in exchange for self-valuation and disclosure of income and assets.[1] The Comptroller and Auditor General of India condemned the scheme in his report as abusive and a fraud on the genuine taxpayers of the country.[2]

References[edit]

  1. ^ "Archived copy". Archived from the original on 3 March 2016. Retrieved 26 February 2015.
  2. ^ Cut your tax bill to just 2-3%