New Delhi, June 18: ``It's now or never. Come be a part of the movement to make India strong''. No, this is not part of a commercial to join the Army, the Navy or the Air Force. It's one of the several smart lines that the advertising agencies Hindustan Thomson Associates and Ogilvy & Mather have come up with to help market the Voluntary Disclosure of Income Scheme (VDIS).

Launched today in the capital, CBDT chief Ravi Kant gave specific details of the scheme which promises ``30 per cent tax and 100 per cent peace of mind''. He also released copies of the fairly simple forms which have to be filled for VDIS. Under the scheme, specific immunity will be given from prosecution under the Income Tax Act, the Wealth Tax Act, FERA and the Companies Act. It has also been clarified by the Ministry of Finance that all immunities are ``prospective'' and do not relate to any tax or other evasion which has been detected in the past, and for which any inquiry is pending. No information got under VDIS, however, will be used to prosecute individuals under any of the four acts mentioned above. Under the Act, all information received under VDIS will be confidential, and even agencies like the CBI cannot force the Government to disclose any details.

While listing the various advantages of the scheme, Ravi Kant pointed out that there are no penalties nor is interest to be paid on past dues. He added that apart from the relatively low rate of tax, 30 per cent for individuals and 35 per cent for corporates, the best thing about the scheme is that it takes the assesses word at face value. No questions are to be asked as to where the income accrued from.

Ravi Kant, however, clarified that the Government will continue with its efforts to ensure that tax compliance increased. He referred to the policy of the tax widening scheme whereby the government was collecting lists of potential tax payers and would match these against those who actually paid taxes. As announced by the Finance Minister in his budget speech, 77.5 per cent of the money collected in the scheme will go to the states and the balance will remain with the Centre. The money will be used to develop infrastructure, as well as health and education projects throughout the country.

While specific immunities will be available under Income Tax, Wealth Tax, FERA and the Companies Act, immunity will not be available for persons who have been charged under COFEPOSA; to those prosecuted under Chapter 9 or Chapter 17 of the Indian Penal Code, the Narcotics and Psychotropic Substances Act 1985, the Terrorists and Disruptive Activities (prevention) Act 1987, the Prevention of Corruption Act 1988 or for the purpose of enforcement of any civil liability.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.