FEMA, PMLA amended to fight black money: Arun Jaitley

By: | Updated: March 10, 2017 12:55 PM

Union Finance Minister Arun Jaitley has today said that the Centre had amended acts like Foreign Exchange Management Act (FEMA) and Prevention of Money Laundering Act (PMLA) to fight against the menace of black money in the country.

Acts have been amended to fight black money, he says. (PTI)

Union Finance Minister Arun Jaitley has today said that the Centre had amended acts like Foreign Exchange Management Act (FEMA) and Prevention of Money Laundering Act (PMLA) to fight against the menace of black money in the country. He replied this while answering a question in the Parliament today. He also said that net revenue collections have seen an increase of 22 .2 percent  at Rs 7.72 lakh crore upto February 2017 over corresponding period last year.

Since October 8, when the NDA Government announce the demonetisation process, several cases of black money have come to light with some even caught and questioned by the probing agency. During his speech PM Narendra Modi had said that the step was being done to control the menace of black money and corruption in the country.

Huge cash deposits in banks followed, as people queued up to trade in their old worthless notes with the new ones being issued by the government, leaving a trail in many cases for tax authorities to investigate suspicious inflows. The government had allowed several points of sale to accept old currency notes in payments for purchases, in a bid to ease the pain of the people trying to meet their daily needs amid a severe cash crunch. Among those points were Mother Dairy and Safal outlets, petrol pumps, government payments, railway tickets, air travel tickets and utility bills.

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In the meantime, the income tax ifficials have served notices to nearly 550 account holders in Himachal Pradesh for depositing more than Rs 15 lakh in the banks, after the demonetisation step , a senior official was quoted as saying in the media. According to Chief Commissioner, Income Tax (Himachal Pradesh), Preetam Singh, depositors have been asked to disclose their source of income, failing which the cash will be treated as black money. He also pointed out that it was not necessary that the money deposited by the people was “black money” and their could be reasons for not disclosing it, he said that now they have to come out with clear answers.

(With inputs from PTI)

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