According to sources in the finance ministry, declarations of around Rs 520 crore have already been made till December 10 and the amount would flow into the exchequer subsequently. Till this date, applications for settlement of disputes have been filed for an aggregate demand of Rs 1,300 crore including Rs 900 crore with regard to direct taxes and Rs 400 crore in respect of indirect taxes.

Sources said that taking into account the fact that 60 per cent of the declarations were made during the first 10 days of December, "the aggregate quantum of disputed amounts for which applications are likely to be filed by December 31 is not likely to be less than Rs 4,000 crore which will yield a tax revenue of Rs 1,500 crore."

It was also pointed out that almost 85 per cent of the applications under the earlier VDIS plan were filed during the lastfortnight and in the case of KVSS, too, the response has picked up towards the close of the scheme. However, officials maintained that the two schemes cannot be compared as the earlier one dealt with unaccounted money, the quantum of which was not known, and the KVSS catered to disputed cases where the amount locked up is limited.

The sources, however, ruled out the possibility of the scheme being extended beyond December 31. Under the scheme, after filing of applications, the department gets two months to process the same and determine the tax payable in terms of the scheme, and thereafter the litigants get a further one month for payment of the amount after intimation. Thus, even if the application was filed on December 31, the litigants would have time till March 31, 1999, to deposit the tax.

The idea, sources said, was to get the money within the current fiscal. It was further stressed that litigants have been given enough time to make up their minds. Meanwhile, finance ministry officials have alsosounded a note of warning for those not opting for the scheme. Having given the tax evaders two chances, one for unearthing black money and the second for settlement of litigants, the officials said that the department would start dealing with them with a tough hand. The department, which has kept the prosecution proceedings in abeyance, was planning "to take up prosecutions with renewed vigour" after the expiry of the scheme.

As far as the response of the public sector undertakings was concerned, sources said that the revenue department has officially taken the matter with other ministries and PSU chiefs. The response, it was pointed out, was positive and many PSUs were keen on taking advantage of the scheme to settle their disputes. The revenue department had tried to impress upon the PSUs that it was a statutory plan and no questions would be asked by either parliamentary panels or CAG for settlement of litigation. In fact, the officials said, PSUs would get an opportunity to come clean by paying taxesat reduced rates.

The officials also regretted lack of support to the scheme by tax consultants and chartered accountants. It was pointed out that "the professional sections seem to perceive the Samadhan scheme as a threat to their future income.