Budget 2015: Finance Minister’s proposals to curb black money

Last Updated: Saturday, February 28, 2015, 16:29

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Zee Media Bureau

New Delhi: The Finance Minister Arun Jaitley said that a very important dimension to India’s tax administration is the fight against the scourge of black money. This was in line with NDA government’s promise of crack the whip on offenders.

Black Money Abroad

Towards this purpose, he said that a considered decision has been taken to enact a comprehensive new law on black money to specifically deal with such money stashed away abroad. The Bill in this regard is proposed to be introduced in the current Session of the Parliament.

The key features of the bill to tackle money stashed abroad will include:

1. Punishment of Rigorous Imprisonment up to 10 years for concealment of income and assets and evasion of tax in relation to foreign assets.

2.This offence will be made non-compoundable and offenders will not be permitted to approach the Settlement Commission.

3. Penalty for such concealment of income and assets at the rate of 300 per cent of tax shall be levied.

4. Non-filing of return or filing of return with inadequate disclosure of foreign assets will be punishable with Rigorous Imprisonment up to 7 years.

Domestic Black Money

As regards curbing domestic black money, a new and more comprehensive Benami Transactions (Prohibition) Bill will be introduced in the current Session of the Parliament.

1. Jaitley said that this law will enable confiscation of benami property and provide for prosecution, thus, blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate.

2. Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs.1 lakh.

3. To improve enforcement, CBDT and CBEC will leverage technology and have access to information in each other’s data-base.