According to top sources in the finance ministry, the declarations of the order of Rs 520 crore has already been made till December 10 and the amount would flow in the exchequer subsequently. Uptil then 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, taking into account the fact that 60 per cent of the declaration was made during the first ten 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 scheme was filed during thelast fortnight, and also in case of KVSS the response had picked up towards the close of the scheme. However, the officials maintained that the two scheme 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 limited.

The finance minister sources, however, ruled out the possibility of extending the scheme beyond December 31. Under the scheme, after filing of applications, the department gets two months to process the application 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 until 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, the finance ministryofficials have also sounded 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, the department would start dealing with them with a tough hand. The department, which has kept the prosecution proceedings in abeyance, was contemplating, "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 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 an statutory scheme and no questions would be asked by either Parliamentary committees or CAG for settlement of litigation. In fact, the officials said, PSUs would get an opportunity tocome out clean of the mistakes they might have made in the past, by now paying taxes at reduced rates.

The officials also regretted lack of support to the scheme by professional 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." On the other hand, it would be professional on their part to advice their clients to take advantage of the scheme, they added.