On Monday Lok Sabha passed a strict law, the Black Money (Undisclosed Income and Foreign Assets) Imposition of New Tax Bill which can bring out black money which are kept outside the nation in other foreign banks. It will bring a check on all those people who strongly deter to come clean at one time and who do not declare their unaccounted foreign investments and fund reserves.
Arun Jaitley, finance minister, told that as world is moving closer because of automatic information exchange between nations it will be difficult for all those people who have kept money outside the country without valid records of it and they can be penalised for such action for not disclosing the assets was said by him while answering to the debate on black money. G20 members along with India have agreed to global framework on automatic information exchange which will help the centre to get information on all the assets held by its citizens from FATCA and US.
Lok Sabha passed the bill and it will go to Rajya Sabha and it can debate on it and return back as it has been said to be a money bill and if the bill is not returned within 15 days it will be considered as being passed. Anyone who declares the unaccounted money, should be paying 30% tax and for not being prosecuted they have to pay penalty in return. Jaitley also stated that center is trying to bring out all black money which are kept in the way of gold and property. Prevention of Money Laundering Act was altered to bring some relief to the tax officials to get recovery of the domestic money or assets along with those who were caught in foreign asset under this new black money law. This is the part of Mr Modi’s government to bring out all the black money that are hiding in foreign banks and making it a criminal offence where a person caught under this can be imprisoned for 10 years of jail. All those who benefit from black money can also come under the stiff punishments and fines for not disclosing their share in it. Jaitley further said that this would help in improving tax collections and also bring down the tax rates on the citizens. Opposition argued that this will result in harassing the innocent persons.
by Sushma Javare.