SIT and Government On The Drive To Wash Off Black Money

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black moneyRecently, the hon’ble Prime Minister of India Sri Narendra Modi has guaranteed to bring to light every single black money which is being hidden in the foreign countries. However, it is a complex job to bring the entire money back to India as total amount cannot be assessed. The administrative authorities have stated that the black money held abroad has been brought back to our country by foreign investments. The prevailing approximation regarding black money fluctuates frequently. Some of the experts have pointed out that the Swiss bank does not contain major part of the black money which is made out in the Indian market. They are of the opinion that such money has been transformed as white money by the procedure known as round-tripping or has been collected in the form of tax. Moreover, most amounts are already invested in terms of real estate business.

In 2011, a research was undergone by scholars connected with the Foreign Direct Investment where it was revealed that major part of the investments is the direct consequence of the round-tripping process. The result also shows that the money which is deposited by the people of India in the Swiss Bank as a share of the entire money is much less when compared with other nations. In 2005, the Parliament has enacted the Prevention of Money Laundering Act, 2005 to control the threats of income generated from black money. After the enactment nearly 1500 cases are reported as on 2012. The Modi Government has taken initiative to bring back black money to the Indian economy due to these reasons.

In recent times, the Enforcement Directorate has brought forward Radha Timblo, former Director, Timblo Private Limited who was engaged in the black money issue. The Directorate has ordered for the personal appearance of the person at the office of the Central Agency on 18th of this November. The CBI has also submitted report to the Apex Court listing the names of the persons involved in black money cases.

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On Sunday, the Prime Minister again stressed his decision to fight against black money holders who escape from their responsibilities by tax evasion. In accordance with the rules formulated by the Central Board of Direct Taxes, the banks are directed to reveal the details of the true holders of accounts. The new measures that hit black money holders will be made effective from the coming financial year. The Government has also given authority on a Special Investigation Team as per the directions of the Supreme Court. The team successfully designed tricks to spot evasion of tax which is its primary goal.

The tax department was given direction by Union Finance Minister, Arun Jaitley to immediately collect details of local people who evade tax. Hence, the BJP Government has jointly taken the fight against of black money as a commitment to the Indian people. The hon’ble Supreme Court has asked for the details of persons taken from the foreign Governments involved in black money marketing. But the Government is of the opinion that the names of such persons shall be disclosed after obtaining proper confirmation. The Government shall take decisions on such issues only after signing Foreign Account Tax Compliance Act (FATCA) on 31st of this December. India has made a decision that in 2017, it will pioneer automatic information exchange where the details of the Indian citizens of foreign countries can be obtained effortlessly.

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The Special Investigation Team has also reported that the black money holders are digging out amount from the accounts abroad prior to the actions taken against them by the Government of India. The preliminary report of SIT was presented before the Supreme Court which is openly supervising the black money case. The Government of Switzerland has declined to give sufficient details of the account holders even after repeated demands from the SIT. It is also essential to note the assessment submitted by the Global Financial Integrity Foundation to the SIT that states the illegal financial transactions carried out from the developing nations. The report shows that India keeps fifth position when equalized with 142 other nations in such transactions.