VDIS 1997 was introduced as an opportunity for tax dodgers to come out with clean hands. But, the scheme has confounded those who were wanting to avail of this opportunity.

Worse still, the clarifications and instructions issued by the I-T department from time to time has added to the confusion. Yet, the scheme has helped the department mop up tax revenue worth nearly Rs 3,300 crore.The controversies on jewellery, silver-wares, issue of certificates, review of certificates that have issued, have posed limitations on the tax revenue collection. The department is compensating this shortfall with a fear drive launched though surveys, raids and notices. The latest being the threats issued to the farm houses owners. It is suggested that people should come forward within a span of ten days and come clean on their tax payments.

Too good an opportunity to be missed: VDIS 1997 is a very attractive scheme at a very attractive rate of tax. The 30 per cent tax rate is the lowest ever this century. The voluntary disclosure will prevent a 60 per cent tax rate, 300 per cent penalty and prosecution. ``30 per cent is just peanuts to buy peace''.

People holding immovable properties and other valuable assets: The department has equipped itself with super computers and the latest info-tech to create a wider data-base on tax dodgers. Owners of farm houses and holders of various other valuable assets are being issued notices for detailed scrutiny. It is advisable to come clean at this point of time to peacefully enjoy possession of valuable assets and avoid harassment.o Persuasive method applied by the department: The department is using various persuasive methods like surveys, raids, notices and verbal communications from the assessing officers to the assesses to disclose their black money under the scheme or alternatively face severe consequences. It is in the interest of the assessee to come forward and pay taxes.o The Board has also issued final clarification on jewellery to end the debate and the owners of jewellery can now come forward to disclose their share.o VDIS clarification on jewellery (Press note dated 3.12.1997): Queries have been raised in certain quarters as to what is meant by the term `jewellery' under VDIS 1997. It had been clarified through circular number 753 dated 10 June, 1997 that the expression `jewellery' shall have the same meaning as assigned to it in Explanation (a) to clause (ea) of section 2 of the Wealth Tax Act, 1957/Explanation I to clause (viii) of section 5 of the Wealth Tax Act, 1957. As per this definition, `jewellery' includes:(i) Ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel.(ii) Precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any weaving apparel.This definition applies to disclosures and declarations made under VDIS. The date for purposes of valuation will be 1.4.1987 for acquisition made prior to that date. For acquisitions made subsequent to 1.4.1987, the year of acquisition will be the relevant year for valuation.CBDT hopes that this press release will set at rest unnecessary and erroneous impression on this issue.In respect of valuable articles such as silver utensils, gold coins etc. not falling within the definition of `jewellery', the CBDT communication dated 25.11.1997 will apply. A quick review of the information furnished by the commissioners indicates that there were only a small number of cases (out of the several thousand declarations) where the quantity of disclosed silver utensils, gold coins, etc. appeared to be of an unusual nature. Such cases will be reviewed by the Commissioners. Where the quantity of disclosed silver utensils, gold coins, etc., is normal, the Commissioner's certificate will not be reviewed.New declarations of a normal nature will also continue to be accepted and certificates will be issued promptly. The object of the communication dated 25.11.1997 was to curb any obvious misuse of VDIS, and it is hoped that this objective will be appreciated by the general public.Further, A K Batabyal, member, CBDT, told reporters on 16 December at a seminar organised at the Federation of Andhra Pradesh Chambers of Commerce and Industry, that the officials are negotiating with the state governments for exempting the assessee from state and local taxes leviable on the disposed income. He said the Punjab, Haryana, Gujarat and Himachal Pradesh governments have accepted the proposal.He said that if the disclosure of silver or gold utensils of over 50 kg is considered unusual, in that case the concerned officer or the Commissioner is empowered to seek clarification on the source of the asset.

However, the officer can allow the assessee to disclose more than 50 kg if he is convinced of the case.Hence, in view of the above discussion, it is in the interest of assessee to make the disclosures at this right time.

The Jindals are Delhi-based chartered accountants.

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