1. Black money: Stung by poor response, govt vows crackdown

Black money: Stung by poor response, govt vows crackdown

The finance ministry on Friday warned of a crackdown on individuals and entities holding unaccounted wealth abroad after the one-time compliance window that ended on September 30 elicited poor response.

By: | New Delhi | Updated: October 3, 2015 12:39 AM
Black money

Under the black money law, having hidden foreign wealth would fetch up to 10 years of rigorous imprisonment besides tax and penalty amounting to 120% of the value of such wealth, besides its confiscation. (Reuters)

The finance ministry on Friday warned of a crackdown on individuals and entities holding unaccounted wealth abroad after the one-time compliance window that ended on September 30 elicited poor response.

Only 638 returns were received under the three-month compliance window offering R3,770 crore of previously unreported foreign wealth for 60% tax and penalty in return for immunity from prosecution under the stringent black money law.

Economic affairs secretary Shaktikanta Das tweeted that those who did not declare foreign wealth under compliance scheme have underestimated the power of information exchange and that they would regret.

India had on September 30 set in motion a comprehensive information exchange agreement with the US deal to tackle offshore tax evasion. The income tax department, which sent the first tranche of information about Americans holding financial assets in India to the US revenue authorities, is awaiting similar information about the financial assets Indians have in the US. The move is part of the effort of tax authorities to collect information about assets held abroad by people that would help in accurately assessing their taxable income.

“Fight against black money is a part of economic reforms. As a country, we can’t allow ghost economy to undermine real economy and growth,” Das said in another tweet. He was the revenue secretary when the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, came into force.

India will also benefit from a multilateral automatic exchange of information agreement, which will come into force from 2017.

Under the black money law, having hidden foreign wealth would fetch up to 10 years of rigorous imprisonment besides tax and penalty amounting to 120% of the value of such wealth, besides its confiscation. Even non-disclosure of foreign assets which are acquired using tax paid funds would attract a Rs 10-lakh penalty under the Indian black money law.

Tags: Black Money
  1. Hemen Parekh
    Oct 3, 2015 at 9:15 am
    FROM GREED TO GREAT ? In my blog of 18th Sept , I had estimated BLACK MONEY disclosure of ( may be ) , Rs 40,000 crores , under Undisclosed Foreign Income and ets Act - 2015 That would have netted Government , Rs 24,000 Cr by way of tax / penalty I was way off the mark ! The 3 month opportunity window closed two days back , with a disclosure of Rs 3770 cr , by 638 persons , netting Govt Rs 2262 cr ! Quite like , " Digging the Mountain to find the Mouse " Now , some knowledgeable persons / organizations have estimated that the amount of BLACK MONEY stashed away domestically , could be close to, Rs 25 Lakh*Crores ! But then , man-on-the-street guesses that to be Rs 100 Lakh*Crores ! Time and again , that common man have proved the pundits wrong ! I suppose , the common man knew all along that half-hearted amnesty schemes are bound to fail , as in the past But pundits refuse to learn from their past mistakes ! They refuse to recognize that nowhere in the World , any Government has succeeded at any time to legislate the GREED away ! And fail to understand why NDA government is hesitating to harness the unlimited power of SUN - the almighty SUN OF GREED By : * Abolishing Personal Income Tax ( source of the DARKNESS of CORRUPTION ) * Stop asking any questions as to the " Source " for all cash deposits made into bank accounts opened under Jan Dhan Yojana * Levy a Bank Transaction Tax ( BTT ) of 2 % to yield revenue of Rs 15 lakh*crores , which would be 5 times the loss of revenue due to abolition of Personal Income Tax * Encourage deposits made into Jan Dhan bank accounts to be invested in SOLAR POWER SPV Farms , by direct depositing of income derived ( from of electricity to DISCOMs ) into those bank accounts - again free of Personal Income Tax ( setting in motion, a VIRTUOUS CIRCLE ! ) NDA is planning to harness 100 GW of Solar Power by 2020 If above-mentioned suggestion is implemented , India could harness 1000 GW of Solar Power by 2020 ! Just imagine what that could do to GDP / SELF-EMPLOYMENT / CLIMATE Let us harness GREED to make INDIA GREAT ! ------------------------------------------------------------------------------------- hemen parekh 02 Oct 2015 B2BmessageBlaster
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