Finance Arun Jaitley stated that the present chance given to disclose income does not fall under the category of amnesty or voluntary disclosure of income (VDIS) of 1996.Presenting the 2016-17 budget finance minister said he wanted to give a compliance window for the non complaint citizens without any further legal action. One can clear the past dues by paying 30 percent tax charge, a surcharge at 7.5 percent and a penalty of 7.5 percent. This amounts to 45 percent of the undisclosed money.Amnesty creates inequality where an honest tax payer pays 30 percent and defaulter after few years pays the same 30 percent. Amnesty is the same as VDIS of 1996 and the current option is not structured that way.

By paying penalties money outside the system is brought in to the system. The compliance window will be open from June 1st to September 30th of 2016. And one has to pay the money within two months of declaration. In the previous budget the government came out with the same option for foreign assets holder. The present government has been trying various formulas to bring in more money into the countries revenue. India has a very small base of tax payers and has a staggering fiscal deficit of 3.5 percent.Finance ministry also came up with the idea of “name and shame” policy of high asset defaulters. They also brought out stringent norms to filter out duplicate Personal Account Numbers (PAN) to increase compliance.