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Amnesty Scheme
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Amnesty  Scheme
Amnesty Scheme
Tax amnesty is an opportunity to pay a fixed amount, in exchange for the remission of liability of tax (including interest and penalties) relating to a previous tax period and without fear of criminal prosecution for limited. 
 
Amnesty Scheme is introduced in the fiscal year to help treasury of State raising revenue from the tax to add beneficiaries in tax base who have failed to declare their assets previously. Under this scheme, the recipient has to pay some tax on the total assets which are proclaimed in Amnesty scheme. This scheme was introduced when the state believes that citizens are concealing their wealth from their respective authority.
 
Tax revenue raised through these amnesty schemes is used for the betterment of State. Every individual and company has to report annually about their business activities in a tax return and should file the same to Revenue and Tax authorities of State. Those who remain glassy in declaring their assets and liabilities to the bodies of tax do not get inquiries or investigations.
 
Tax Amnesty scheme is beneficial to those who are hiding or not declaring their assets transparently for years; they can make their assets legitimate by informing them whether they exist within or outside Country. When such schemes were introduced State Revenue, and the Tax department gave time to declare their wealth without any penalty. Once the time elapses there will be penalty addition to original Amnesty tax rate.
 
As we know in the city like Mumbai and its Suburbs, the prices of the residential and commercial premises are too high. Also, the government generates revenue from the properties sold in the form of Stamp Duty and Registration charges. Hundred of the transaction of residential premises to purchase/sold is done every year, in that case, most of the purchasers and sellers obediently pay the registration and stamp duty. But it has observed that few hundreds of them have successfully avoided the stamp duty and other charges to save few rupees.
 
In 2008, the Maharashtra Government had implemented a successful Registration charges and stamp duty Amnesty  Scheme known as "ABHAY YOJANA 2008" where thousands of flat-owners benefited by regularising their flat-ownership agreements and the Government earned revenue from it. The Government closed the said scheme, but there exist more thousand of old and new evaders to save the said duty and charges.
 
In the year 2019, the Maharashtra Government announced the stamp duty amnesty scheme, where the property purchasers have not paid stamp duty on purchase agreements could regularise the sale by paying tax with a nominal penalty.
 
The flat owners who did not pay stamp duty on their home – purchase agreements will get a chance to regularise their purchase by paying stamp duty within the specified time under this scheme. Property conveyance cannot be executed unless stamp duty is paid on flat-purchase agreements, which leads to problems later, especially when owners wish to redevelop their buildings. Besides that, getting bank loans against such properties also becomes difficult.
 
The Amnesty Scheme would help in increasing the goodwill and popularity of the respective government and would also increase the revenue by thousands of crores rupees in return.
 

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