VOLUNTARY DISCLOSURE OF INCOME SCHEME.

INTRODUCTION:

The voluntary disclosure income scheme (VDIS), was a very unconventional but successful step among Indian economic policies. It would provide an opportunity for income tax or wealth tax defaulter to disclose their undisclosed income at the prevailing taxes rate. This scheme would also ensure that the laws relating to the economic offense would not be applicable to those defaulters.

ABOUT THE SCHEME:

Over 3,30,00 people disclosed their income and assets under this scheme, which brought the revenue of 78 billion to the Indian finance ministry. Perhaps this scheme was closed on December 31st, 1997 (almost twenty-one years ago). The union finance minister P. Chidambaram hoped 'it is my faith, that given a chance the people of India would come clean to the black money. 

CONTROVERSIES RELATED TO THE SCHEME:

The voluntary disclosure income scheme (VDIS), granted income tax defaulter the infinite immunity for prosection under foreign exchange regulation act, 1973, the income tax act 1961, the wealth tax act 1956 in exchange for self-evaluation and disclosure of income or the assets. The comptroller and auditor general of India condemned the scheme on his report as an abusive and a fraud on the genuine taxpayers of the country. Turning down the scheme reduced the check over frauds and defaulters.