1. PM Narendra Modi’s Rs 500, Rs 1000 note crackdown cripples hawala ops

PM Narendra Modi’s Rs 500, Rs 1000 note crackdown cripples hawala ops

The SC-appointed SIT was formed to investigate assets abroad and come up with guidelines to curb generation & circulation of black money. It recommended various administrative and institutional measures

By: | Published: November 10, 2016 6:37 AM

Special Investigation Team (SIT) on black money

The SC-appointed SIT was formed to investigate assets abroad and come up with guidelines to curb generation & circulation of black money. It recommended various administrative and institutional measures

Foreign black money compliance window

A 90-day window was provided in 2015 to declare undisclosed foreign assets; R4,200 crore was disclosed at a penal tax rate of 60%

Black Money Act, 2015

Stringent provisions: Undisclosed foreign assets to be taxed at 30%; penalty at 3X of tax payable with imprisonment from 3-10 years

Income Declaration Scheme 2016

A one-time window was provided for resident Indians to declare their undisclosed assets and pay taxes on them without incurring punitive actions. More than R65,000 crore was disclosed under this scheme; 45% of this tax revenue

Mandatory PAN requirements

Government has made it mandatory to use PAN for all transactions done through cash or prepaid cards, including jewellery, above R2 lakh. PAN is mandatory for purchases of immovable properties above R10 lakh

New DTAAs signed alongwith renegotiation of old ones

Government has negotiated an automatic information exchange agreement with Switzerland and is negotiating similar treaties with other tax havens

Using Fema to regulate exports earnings

In line with the recommendations from the SIT, nearly 788 exporters (as of July 2016) were being probed for not bringing back earnings to India within the stipulated timeframe

Amendments to Prevention of Money Laundering Act 2002, vide Finance Act, 2015

The Act has been amended to enable attachment and confiscation of equivalent assets in India wherever assets located abroad cannot be confiscated

Ban of extant R500 and R1,000 notes

New notes of R500 and R2,000 will be introduced

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