FinanceVOLUN

Voluntary Disclosure of Income Scheme (VDIS)

A historical tax amnesty scheme introduced in 1997 allowing tax defaulters to declare undisclosed income at prevailing tax rates and obtain immunity from prosecution.

Tax BenefitExisting Micro / MSMELarge ManufacturerDomestic Investor
Benefit
Amount varies - see details
Typical lead time
Phase
Benefits

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Official fee

₹0 — completely free

No processing fees were charged for filing VDIS declarations at designated commissioner offices.

Beware of lookalike portals

All tax liabilities under the scheme were settled only through authorized challan deposits in nationalized banks. Beware of fake advisors demanding commission shares.

Only the "Apply on official portal" button above leads to the verified government site.

Highlights and Media

Audio Summary Guide

Voluntary Disclosure of Income Scheme Overview

Generated via NirmanKit AI Voice

0:001:36

This AI-generated podcast overview simplifies complex scheme documents. Refer below for official text.

Key Highlights

Defaulter Amnesty

Provided a unique amnesty opportunity to voluntarily declare wealth and become tax-compliant.

Absolute Confidentiality

Guaranteed that details of disclosures would not be shared or audited subsequently.

Legal Immunity

Provided complete protection from prosecution under FERA, Income Tax, and Companies Acts.

VDIS Amnesty Tax Rates

Tax rates charged on the declared value of undisclosed assets

Individual Declarants

30% Tax Rate

Standard rate applied to individual taxpayers and unregistered partnerships.

Corporate Entities

35% Tax Rate

Tax rate applicable to registered companies and corporate firms.

Who is eligible

  • Eligible taxpayer or business entity with undisclosed assets who participated during the active window.

Eligibility rules · v1 · effective 1 January 2020

Who is not eligible

  • This historical scheme is closed. Compliance is validated for previously registered declarations.

How to apply

  1. Submission of VDIS Form-1

    Submit VDIS Form-1 detailing undisclosed assets or income to the Commissioner of Income Tax.

    Typical duration · 10 days

  2. Tax Settlement Payment

    Deposit the prescribed taxes (30% for individuals, 35% for corporates) through authorized bank challans.

    Typical duration · 15 days

  3. Certificate of Disclosure

    Receive the official certificate of disclosure from the Income Tax department, confirming legal immunity.

    Typical duration · 15 days

Sources

Additional Details

The Voluntary Disclosure of Income Scheme (VDIS) was a highly successful, one-time central tax amnesty scheme launched by the Government of India in 1997 under the Ministry of Finance. Running until December 31, 1997, the scheme provided an opportunity to individuals and companies to disclose their undisclosed income or assets at prevailing tax rates (30% for individuals, 35% for corporates). VDIS granted full immunity to participants from prosecution under the Foreign Exchange Regulation Act (FERA), Income Tax Act, Wealth Tax Act, and Companies Act. Over 350,000 citizens participated, bringing hidden wealth back into the official banking system and generating substantial revenues for public welfare projects.

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