Govt announces steps taken to curb black money

The Dollar Business Bureau

The government on Tuesday announced the steps and decisions it has taken in the last two years to curb the menace of black money in India and outside the country.
Listing out the initiatives, the Ministry of Finance said it had enacted a new Black Money Act with strict penalty provisions. It has formed a Special Investigation Team (SIT), which has, in the past, formulated a new Income Disclosure Scheme for domestic black money.

The SIT has also unearthed tax evasion of about Rs. 50,000 crore of indirect taxes and Rs.21,000 crore of undisclosed income through enhanced enforcement measures. It has also seized goods used for smuggling activities worth Rs 3,963 crore over the past two years.

The Finance Ministry said it has made amendments in Prevention of Money-Laundering Act, “to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.”

“The Customs Act which deals with offence relating to false declaration/ documents in the transaction of any business relating to Customs has been made a predicate offence under PMLA to curb trade based money laundering,” it said in a statement.

It has also made a scheduled offence for anyone willfully attempting to evade any tax, penalty or interest, which could be in forms of foreign income and assets, under PMLA.

The government has also amended the Foreign Exchange Management Act (FEMA), 1999. “The amendments 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,” it said.
To sum up the provisions made by the Finance Ministry are:
1. Sustained steps taken for curbing black money:-
(a) A new Black Money Act has been enacted with strict penalty provisions.
(b) Special Investigation Team has been constituted being chaired by an ex-Supreme Court Judge
(c) A new Income Disclosure Scheme formulated for domestic black money.
(e) Prosecution has been launched in 1466 cases as against 1169 cases in the previous two years (a 25% increase).
2. Amendments made in Prevention of Money-laundering Act, 2002, vide Finance Act, 2015:
The definition of proceeds of crime under PMLA has been amended to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.
The offence of wilful 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.
3. Foreign Exchange Management Act (FEMA), 1999 has been amended vide Finance Act, 2015. The amendments 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 Section 4 of FEMA.