NEW DELHI, June 8: An upbeat Central Board of Direct Taxes (CBDT) is setting up a special task force comprising senior officials of the department to implement the voluntary disclosure scheme (VDS) which will be launched on July 1.

Setting up of a special task force is the part of the elaborate arrangement being made for successful implementation of the scheme which had elicited good response from individuals as well as corporates. Although no targets have been set for the scheme, tax evaders can expect a near ``red carpet'' welcome provided they want to come clean be paying 30 % income tax. The tax rate for companies will be 35 %. The scheme will continue till December 31.

The details of the VDS, which is being worked out by the CBDT, will be formally announced by Finance Minister P Chidambaram later in the month. The minister will also be releasing a handbook on the VDS prepared by the CBDT in the question-answer form. The high-voltage launch of the scheme will be backed by publicity blitz being jointly organised by leading advertising firms in the private sector namely Hindustan Thomson Associates (HTA) and Ogilvy and Mahter (O & M)

The handbook will be based on the inquiries received by the CBDT and the questions raised regarding the implementation of the scheme during discussions within the revenue department.Chairman of the CBDT, Ravi Kant, while talking to The Indian Express said that special arrangement would be made for delivery of VDS forms and acceptance of the tax money at about 80 commissioner charges all over the country. A dedicated cell will be there in all commissioner charges for providing information about the VDS.

He added that individuals would not have to run to Delhi, Mumbai or any other metropolitan centres either for VDS forms or any clarification regarding the modalities of the scheme.

More importantly, he added, senior officials of the department would be directly interacting with those wanting to declare unaccounted income. This, he added, would ensure all secrecy for those wanting to disclose unaccounted funds.

Describing the scheme as a golden chance for tax evaders to become honest, Ravi Kant that the CBDT would accept the taxes on unaccounted money without any inquiry whatsoever. The person making a disclosure, he said, would be required to file a declaration in a prescribed form before the commissioner, who in turn would grant a certificate to him setting forth the particulars of the voluntarily disclosed income and the amount of income-tax paid. The board will accept the claims without any question and also not initiate any inquiry in future about the sources of declared money.

However, he added, as the scheme did not give immunity for proceeds from a set of crimes described in the finance bill, the onus on probing the sources of funds would be on other investigating agencies. The CBDT, on its part, would accept the returns without any inquiry.

The finance bill, he added, did not give immunity from offences under certain sections of the Indian Penal Code, Narcotics and Psychotropic Substances Act, Terrorists and Disruptive Activities (Prevention) Act.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.