Government suggests four pronged strategy to curb black money

White Paper suggests four pronged strategy to curb black money

The government tabled a White Paper on black money in Parliament as promised by the Finance Minister at the beginning of the Budget session. Tabled by Finance Minister Pranab Mukherjee in the Lok Sabha,the White Paper, made a strong case for setting up Lokpal and Lokayuktas to deal with the menace.

The minister categorically informed the House that there was no exact estimation of the black money generated in the country but refuted the reports that Indians held the largest deposits in Swiss banks by providing data.

The Government in the White Paper also stressed the need for more research to arrive at reliable estimates of extent of black money and sought the cooperation of the state governments too in addressing the problem. The 97-page document, however, pitched for fast-track courts to expeditiously deal with financial offences and deterrent punishment for offenders.

It has also suggested tax incentives for encouraging use of debit and credit cards as these leave audit trails. On the possibility of any tax immunity scheme, especially gold deposit scheme, to deal with black money, it said, the issue of complete tax immunity needs to be examined in the light of other policy objectives.

The Paper suggested four-pronged strategy to curb generation of black money. These include more incentives for voluntary compliance of tax laws, reforms in vulnerable sectors of economy and creation credible deterrence. It mentioned that reform of financial and real estate sectors would help in reducing generation of black money in long term as freeing of gold imports had helped in checking smuggling.

In order to curb black money in the real estate sector, which accounts for 11 per cent of GDP, the Paper suggested that government should develop a nationwide data base, introduce TDS on sale of property and set up electronic payment system.

The document seeks to dispel the impression that government was not doing enough to deal with black money and talks about various policy options and strategies it has been pursuing to address the issue of corruption in public life. In order to check the menace of black money, Mr.Mukherjee in his foreword to the Paper said, the government has brought five bills the Lokpal Bill, the Judicial Accountability Bill, the Whistle Blowers Bill, the Grievance Redressal Bill and the Public Procurement Bill, which are at various stages of consideration by Parliament.

He said the expansion of information exchange network at the international level will help in curbing cross-border flow of illicit wealth, adding while these measures will set the tone for an equitable, transparent and a more efficient economy, there is much that we could do, both individually and collectively, to strengthen the moral fibre of the society.

News- Black Money in Polls: CEC seeks Public Help

Black Money in Polls: CEC seeks Public Help

Chief Election Commissioner S. Y. Quraishi sought people's participation in checking use of black money in elections. In his convocation address at the Himachal Pradesh University in Shimla on Monday, he said the Election Commission’s aim was to hold free and fair elections in a crime-free environment with full participation of voters.

Dr Quairshi said people should act as the watchdogs in checking use of black money in the polls. He said the Election Commission would soon come up with a Systematic Voters’ Education and Electoral Participation wing that rolls out comprehensive community outreach and multi-media campaigns to bring all citizens in to electoral participation.

News-SC reserves orders on SIT’s appointment

SC reserves orders on SIT’s appointment to probe black money issue

The Supreme Court on Thursday reserved its orders on the maintainability of the Centre's plea for recall of its July 4 order appointing an SIT to probe the black money issue.

A bench of justices Altamas Kabir and S S Nijjar said it would pass appropriate orders on the maintainability plea on September 20.

Attorney General G E Vahanvati, in his brief intervention, said the order ought to be recalled as the Centre was proceeding in the right direction in unearthing the black money allegedly stashed away in foreign tax havens.

News- Centre steps up efforts to unearth black money

Centre steps up efforts to unearth black money in country

Government steps up efforts to unearth black money in the country and prevent tax evasion. This includes scrutiny of tax returns, surveys, imposition of penalty and launching of prosecution in appropriate cases. Official sources said, Information Technology is also being used in collection, collation and dissemination of taxpayer information. The Income Tax Department has also set up an Integrated Taxpayer Data Management System to electronically collate Information collected from various sources.

The sources said that Information is received from Financial Intelligence Unit under the Department of Revenue regarding suspicious transactions from various banks and financial institutions. This information is thoroughly being investigated by the Department. Besides, the Department has set up two specialized wings to investigate and assess the cases of foreign companies, expatriates and non-residents indians.

News- President calls for war against black money

President calls for war against black money

The President Mrs. Pratibha Devisingh Patil today said that the war against black money has to be fought both domestically and through cross border measures. Speaking at the concluding ceremony of the year long celebrations commemorating 150 years of Income Tax in the country, Mrs. Patil emphasized for better global co-operation to track down evaders taking shelter in other countries.

The President said, an environment of voluntary tax compliance has to be fostered and nurtured in the country. She said, the importance of meeting tax obligations has to be ingrained in the minds of children as they can be made tax responsible citizens of tomorrow. Speaking on broad policy issues on taxation, Mrs. Patil said the interface with compliant taxpayers, especially small taxpayers, senior citizens and pensioners must be initiated and maintained on a continuous basis, for a feedback on difficulties being faced by them. She said the use of electronic modes for filing returns should be further popularised for greater efficiency.
The President expressed confidence that with the widening of the present taxpayer base by about 3.5 crore taxpayers, the direct tax-to-GDP ratio will rise beyond the present figure of 6.1 per cent.

The President also released a book on the completion of 150 years of Income Tax.
Speaking on the occasion, Finance Minister Pranab Mukherjee said, E- governance initiatives are being taken for better management of taxes. He said direct tax collection is about 56 per cent of total tax collection. Mr. Mukherjee said the Direct tax code, DTC, when enacted, will further simplify tax regime and will be more transparent and tax payer friendly.

News-Govt files review petition in SC on Black Money

Govt files review petition in Supreme Court on black money case

The Union government today filed a review petition in the Supreme Court seeking to recall and reconsider its earlier judgement of handing over the investigation in black money case to Special Investigating Team (SIT).

A bench comprising Justices B Sudarshan Reddy (since retired) and S S Nijjar had appointed SIT headed by former Supreme Court judge B P Jeevan Reddy to investigate the black money case. Another retired Supreme Court judge M B Shah was made the Vice-Chairman of SIT and the government appointed high power committee headed by Union revenue secretary who was also made part of SIT. The Union government in its review petition has contended that the job of investigation into an offence is the job of statutory investigation agency and such agency cannot be subjected to the supervision of retired judges, bureaucrats or private individuals and such a course amounts to expressing lack of faith in the investigating agency. The Union government has prayed for stay of the operation of the SIT order passed on July 5. The government has also pleaded that the matter may be referred to a larger bench.

News- Supreme Court appoints special Investigation team on black money issue

Supreme Court appoints SIT to probe black money cases

The Supreme Court has appointed a high-level Special Investigation Team, SIT, headed by former apex court judge B P Jeevan Reddy to monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks.

Besides Justice Reddy, who will be the Chairman of the SIT, the apex court also appointed its former judge, Justice M B Shah as the Vice-Chairman of the panel.

A Bench comprising Justices B Sudershan Reddy and S S Nijjar directed that the High-Level Committee constituted by the government to look into the issue of black money, would "forthwith" be a part of the SIT.

The Bench also directed the government to disclose the names of all the persons who have been issued show cause notices by the authorities in connection with the probe into the black money issue.

The Court, however, made it clear that the authorities would not disclose the names of those who have not been investigated in connection with deposits made in foreign banks including Liechtenstein bank.

The Court passed the order on a petition filed by eminent jurist Ram Jethmalani and others seeking directions to the government to track black money stashed away abroad and bring it back.

The BJP today welcomed the Supreme Court decision to appoint a Special Investigation Team (SIT) headed by a former Supreme Court judge to investigate the black money case. Party spokesman Prakash Javadekar said the action of the Supreme Court showed that even the judiciary felt that nothing much was done by the government to bring back the black money stashed abroad.

News-Prime Minister Says that the Government committed to take steps to deal with black money

Government committed to take steps to deal with black money: Prime Minister Dr.Manmohan Singh
Government is committed to taking all possible steps to deal with black money, tax evasion and corruption in the country. Speaking to a group of select editors in New Delhi today Prime Minister Manmohan Singh said, that it is not a one-shot operation. Dr. Singh said, he had no hesitation in bringing his office under the purview of Lokpal. However, many of his Cabinet colleagues felt that bringing the institution of Prime Minister under Lokpal would create instability

Politicalcareer for Indian Youth- News- More steps to renove Black Money

More steps to renove Black Money

Foreign Exchange Management Act (FEMA), Prevention of Money Laundering Act( PMLA) and other indirect tax laws to curb the menace of black money. Finance Ministry officials told news persond that the committee, headed by CBDT chairman Prakash Chandra, is also likely to review the Central Excise Act. The existing Prevention of Corruption Act might be amended to suit the present day requirements.The high level committee set up to look into ways of curbing black money and its illegal transfer abroad as also its recovery wants tax evasion to be treated as a criminal offence.

Government set up one more committee to trace black Money

CBDT Sets-up a Committee to Examine and Suggest Ways to Recover Income Tax Demand Classified under the Categories “Assessees not Traceable” and “No Assets/Inadequate Assets for Recovery”

In order to examine certain suggestions on Income tax Demand classified under the categories “Assessees not traceable” and “No assets/inadequate assets for Recovery”, a Committee has been constituted by the Central Board of Direct Taxes (CBDT) with following constitution:

i) DGIT (Admn) - Smt. Anita Kapur - Chairperson

ii) DIT (Recovery) – Smt. Sheba Bhattacharya - Member
iii) DIT(Systems)-III - Shri Harish Kumar - Member
iv) Director (ITCC) – Shri Deepak Garg - Member
v) A nominee of FIU-IND - Member
vi) Addl. DIT (Recovery) – Shri H. A. Siddiqui - Member Secretary
vii) Any other member(s) to be co-opted by the Chairperson
The modified terms and conditions of the Committee will be as follows:-
i) To suggest modalities for utilization of the information available with FIU-IND and the Directorate of Income Tax (Systems) for the recovery of outstanding demand in such cases.

ii) To examine the possibilities of engaging the outside agencies to locate the whereabouts of non traceable assessees or their assets and also unknown/undisclosed assets owned by the assessees with inadequate assets vis-à-vis the outstanding demand.

iii) To propose a reward scheme for informants who supply information about such tax defaulters and which results into collection of the outstanding demand.

iv) To propose a scheme regulating such outsourcing to outside agencies for its administration by the field formation

v) To examine the feasibility and methodology of putting the names of chronic tax defaulters in public domain.

The Committee shall submit its report within two months of its constitution.

Earlier, it was noticed that there is a huge outstanding demand which is not recoverable due to the following reasons:

(i) Demand difficult to recover due to reason that assesee is not treaceable

(ii) Demand difficult to recover due to reason that no assets are available for recovery

Attempts are being made from time to time to recover this outstanding demand by using the asset and bank information available with the Finance Intelligence Unit (FIU) and Annual Information Report Data of System Directorate of Income Tax Department. The list of defaulters is also matched with the asset data available. There is a good possibility to locate some assets to realize this outstanding demand. To further achieve this objective, synergy in the functioning of Directorate of Recovery, Directorate of Systems, CBDT and Financial Intelligence Unit is also created.

Beside above, in the current wave of transparency and anti-corruption drive, there is a demand to put the list of chronic defaulters in the public domain. This will also put the onus on the taxpayers to liquidate their demand.

Political Career for Indian Youth- Government constitutes committee to curb the generation of Black Money

Government of India constitutes Committee to Curb Black Money
Committee constituted under chairman, CBDT to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.
The Government has constituted a Committee under the Chairmanship of Chairman, Central Board of Direct Taxes (CBDT) to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.
The Committee includes Member (L&C), CBDT,
Director, Enforcement Directorate(ED),
Director General, Directorate of Revenue Intelligence (DRI),
Director General (Currency),
Joint Secretary (FT&TR), CBDT,
Joint Secretary, Mol, Director,
FIU- IND, all as its Members.
The Commissioner of Income Tax (CIT)(Inv),CBDT would be its Member Secretary.
The Committee will examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including, inter alia,
(a) Declaring wealth generated illegally as national asset;
(b) Enacting/amending laws to confiscate and recover such assets; and
(c) Providing for exemplary punishment against its perpetrators.
The Committee will also consult all the stakeholders and submit its report within a period of six month


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Political Career- Indian Youth- Indians-Swiss Bank accounts

Our Indians' Money - 70, 00,000 Crores Rupees In Swiss Bank - Received by an E-Mail

1) Yes, 70 lakhs crores rupees of India are lying in Switzerland banks. This is the highest amount lying outside any country, from amongst 180 countries of the world, as if India is the champion of Black Money.

2) Swiss Government has officially written to Indian Government that they are willing to inform the details of holders of 70 lakh crore rupees in their Banks, if Indian Government officially asks them.

3) On 22-5-08, this news has already been published in The Times of India and other Newspapers based on Swiss Government's official letter to Indian Government.

4) But the Indian Government has not sent any official enquiry to Switzerland for details of money which has been sent outside India between 1947 to 2008.. The opposition party is also equally not interested in doing so because most of the amount is owned by politicians and it is every Indian's money.

5) This money belongs to our country. From these funds we can repay 13 times of our country's foreign debt. The interest alone can take care of the Center s yearly budget. People need not pay any taxes and we can pay Rs. 1 lakh to each of 45 crore poor families.

6) Let us imagine, if Swiss Bank is holding Rs. 70 lakh Crores, then how much money is lying in other 69 Banks? How much they have deprived the Indian people? Just think, if the Account holder dies, the bank becomes the owner of the funds in his account.

7) Are these people totally ignorant about the philosophy of Karma? What will this ill-gotten wealth do to them and their families when they own/use such money, generated out of corruption and exploitation?

8) Indian people have read and have known about these facts. But the helpless people have neither time nor inclination to do anything in the matter. This is like "a new freedom struggle" and we will have to fight this.

9) This money is the result of our sweat and blood.. The wealth generated and earned after putting in lots of mental and physical efforts by Indian people must be brought back to our country.