Unusual VDIS disclosures to be probed

CHENNAI, Dec 18: A meeting on Voluntary Disclosure of Income Scheme (VDIS) turned into a heated debate, provoking Commissioner of Income Tax A Balasubramaniam to assert that the Income Tax (IT) department retained its authority to inquire into proceeds or sale of assets such as silver and gold jewellery declared under the scheme. The debate began when the topic of “unusual disclosures” was taken up at a meeting on VDIS, organised by the Institute of Chartered Accountants of India, the All India Tax Payers Association and the Society of Auditors.

Denying that a panic situation has been created across the country over the controversy of declaring silver assets valued as on April 1, 1987, and refusing to define the yardsticks applied in accepting the VDIS declarations, Balasubramaniam said the Commissioners of Income Tax would decide the cases on merit.

Attempts by declarants to misuse the scheme will not be tolerated, he said, adding that uniformity was not possible in all cases.“The circular on unusual disclosures has nothing to do with VDIS per se.” Wrong declaration under VDIS will lead to investigations that could lead to heavy penalties, he warned.