NEW DELHI, May 7: The voluntary disclosure scheme (VDS) announced by union finance minister P Chidambaram in his budget speech 68 days ago has been left untampered except for a minor change in name. Delivering his address in the Lok Sabha while moving the Finance Bill, the minister said, ``None of the political parties which met me opposed the scheme.''

Under the scheme, which has been rechristened voluntary disclosure of income scheme, 1997, disclosures of investment made in jewellery made before the 1987-88 assessment year, will be determined by their value on April 1, 1987.

The minister also said that the provisions of the scheme were considered `in the light of suggestions received from various quarters' and it has been decided that disclosures will be allowed only under the the Income Tax Act, 1961.

It had been earlier proposed that immunity would be granted from income-tax, wealth-tax and the Foreign Exchange Regulation Acts. It has now been clarified that disclosures will attract wealth tax prospectively. No wealth tax will be levied with retrospective effect, the minister clarified.

It had been proposed in February that irrespective of the year or the nature of or the source of the funds, the amount disclosed either as cash, securities or assets would be charged at the revised highest rate of tax.

The revised rate is now 30 per cent. The minister had promised that interest and penalty would be waived.

The date of commencement of the scheme was not announced, but he had said it will end on December 31, 1997.

The minister had further said that 77.5 per cent of the collections under the scheme would be allocated to the states. The share which will accrue to the centre would be allocated for funding the basic minimum services programme and infrastructure needs, he had declared.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.