Modi Govt unearths Rs. 71,000 cr of undisclosed income in 2 years
New Delhi: Government has unearthed evasion of about Rs 50,000 crore of indirect taxes and undisclosed income of Rs 21,000 crore in the past two years, according to the Finance Ministry. “The present Government has
New Delhi: Government has unearthed evasion of about Rs 50,000 crore of indirect taxes and undisclosed income of Rs 21,000 crore in the past two years, according to the Finance Ministry.
“The present Government has taken various decisions and steps to curb the menace of black money both within and outside the country in last two years,” according to a statement released by Finance Ministry on Tuesday.
The statement further says that the crackdown on black money has led to seizing of Rs 3,963 crore of smuggled goods in two years, a 32% jump over a similar previous period.
"Enhanced enforcement measures have resulted in unearthing of tax evasion of approximately Rs 50,000 crore of indirect taxes and undisclosed income of Rs 21,000 crore," it said.
Listing steps taken by the government to curb the menace of black money both within and outside the country, it said a new Black money Act has been enacted with strict penalty provisions.
Also, a Special Investigation Team has been constituted, chaired by former Supreme Court Judge MB Shah.
"Many recommendations of SIT have been implemented since then," it said adding prosecution has been launched in 1,466 cases as against 1,169 cases in the previous two years (25% increase).
India has no official estimate of money stashed overseas, but unofficial assessments put it between $466 billion and $1.4 trillion.
Besides, the government has also planned to open the compliance window under the Income Tax Disclosure Scheme from June 1 to September 30 for domestic tax payers to declare undisclosed income represented in any form of assets and clear up past transgression by paying tax at 30 per cent, surcharge at 7.5 per cent and penalty at 7.5 per cent.
The total due of 45 per cent is to be paid within two months of declaration.
A total of Rs. 4,147 crore of undisclosed wealth was declared during the 90-day foreign black money compliance window that ended September 30, 2015. At 60 per cent (30 per cent tax and 30 per cent penalty), the government got a net tax of Rs. 2,500 crore from the declarations.
Also, "Section 8(8) has been inserted in PMLA providing for restoring confiscated property or part thereof, on the directions of Special Court to claimants with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offences of money laundering," the statement said.
Section 132 of Customs Act which deals with offences relating to false declaration / documents in the transaction of any business relating to Customs has been made predicate offence under PMLA to curb trade-based money laundering.
"The offence of willful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been made a scheduled offence under PMLA," it said.
Foreign Exchange Management Act (FEMA), 1999 has also been amended to provide for seizure and confiscation of value equivalent, situated in India, in case any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, in contravention of FEMA.
(PTI inputs)