Tax Amnesty Schemes.

1. Income Declaration Scheme (IDS 2016):
   1. Launched in 2016 as part of the union budget.
   2. Aimed at unearthing black money and bringing it into the formal system.
   3. Provided an opportunity for income tax and wealth tax defaulters to declare their assets, pay taxes, and a penalty to avoid litigation.
   4. Allowed individuals to come clean by disclosing their undisclosed income and assets.
2. Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY):
   1. Launched in December 2016, following the IDS.
   2. Provided an opportunity for individuals to declare unaccounted wealth and black money in a confidential manner.
   3. Allowed individuals to avoid prosecution by paying taxes, interest, and fines.
   4. Aims to bring undisclosed wealth into the formal economy.
3. Sabka Vishwas-Legacy Dispute Resolution Scheme:
   1. Operational from 1st September 2019.
   2. Announced in the 2019-2020 Union Budget.
   3. Targeted legacy tax disputes related to service tax and excise duty before the implementation of GST.
   4. Aimed to free taxpayers from legacy tax issues.
   5. Components include amnesty and dispute resolution.
   6. Provided relief in tax dues with a full waiver of interest, fines, and penalties.
   7. Offered complete amnesty from prosecution.
   8. Provided relief of varying amounts based on the nature of the case.

Overall Impact:

• Tax amnesty schemes provide an opportunity for individuals to rectify their tax non-compliance and declare undisclosed income/assets.
• Encourage individuals to come forward, pay taxes, and contribute to the formal economy.
• Aims to reduce tax evasion, bring black money into the mainstream, and resolve legacy tax disputes.

Operation Clean Money 1 and 2:

1. Operation Clean Money 1 (2017):
• Initiated by the Income Tax Department (ITD) in 2017.
• Involved the e-verification of large cash deposits made post-demonetization in 2016.
• Used data analytics to compare demonetization data with information in ITD databases.
• Identified individuals with cash transactions inconsistent with their taxpayer profiles.
• Information from banks was used to identify persons with inconsistent tax profiles based on their cash deposits during demonetization.
• Aimed to ensure compliance and identify individuals evading taxes.
2. Operation Clean Money 2:
• Generally, subsequent operations build on the initiatives of the previous ones to enhance tax compliance and address tax evasion issues.

Vivad se Vishwas:

• Introduced in the 2020-21 union budget.
• Aims to provide relief to taxpayers involved in tax disputes.
• Taxpayers who pay the disputed tax within a specified period are granted a complete waiver of interest and penalties.
• Seeks to resolve tax disputes and encourage taxpayers to come forward and settle their tax matters.