Vds Doubts

Section 64 of the Finance Act, 1997 clearly speaks about the tax rate on voluntarily disclosed income. Hence, the question of penal interest besides the flat tax rate does not arise. The question of interest waiver also does not arise.

An important area where immediate clarification is required is with regard to the modus operandi in respect of remittance of foreign funds, specially in aspects relating to income accruing on such funds for 1997-98 and till the date of bringing in these funds. A separate desk should be set up by the ministry to clarify all the doubts relating to the VDS.

I suggest that CBDT brings out a booklet on VDS. This will definitely bring in better results for the new scheme.