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Blackmoney: Govt unearths indirect tax evasion of Rs 50,000 crore in two years

Finance Ministry said the crackdown on black money has led to seizing of Rs 3,963 crore of smuggled goods in two years.

By: ENS Economic Bureau | New Delhi | Updated: May 11, 2016 4:41 am
blackmoney, india blackmoney, india recorded blackmoney, india blackmoney record, indian economy, india economy, economy news, india news 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.

The government has unearthed tax evasion of around Rs 50,000 crore of indirect taxes and undisclosed income of Rs 21,000 crore through a series of measures in the past two years, the finance ministry said in a statement on Tuesday. The value of goods seized on account of smuggling activities has increased to Rs 3,963 crore in the last two years, an increase of 32 per cent over the same period, the statement said.

“Prosecution has been launched in 1,466 cases as against 1,169 cases in the previous two years — an increase of 25 per cent,” the ministry said. To curb black money, the government has made amendments to the Prevention of Money Laundering Act, 2012, as well as Foreign Exchange Management Act (FEMA), 1999, it said.

The Undisclosed Foreign Income and Assets (Imposition of Tax) Act has been enacted with strict penalty provisions and several suggestions of the special investigation team on black money has been implemented to tackle this menace both within and outside the country.

“A special investigation team has been constituted which is chaired by ex-Supreme Court Judge Justice MB Shah. Many recommendations of SIT have been implemented since then. A new Income Disclosure Scheme is formulated for domestic black money,” the ministry said.

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Announced in the Budget 2016-17 by finance minister Arun Jaitley, the new Income Disclosure Scheme is formulated for those holding undeclared assets to pay a total tax and penalty of 45 per cent and come clean. Amendments have been made in Prevention of Money-laundering Act to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited in case of proceeds of crime.

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 offence 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. Insurance brokers and registrar or sub-registrar has been identified as persons carrying on designated business or profession under the PMLA.

The 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 the Act.

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  1. A
    arun
    May 10, 2016 at 4:02 pm
    During congress party rule we never heard any such news about unearthing. Seems that everything unearthed during the Congress party rule is invested in Italy.
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      arun
      May 10, 2016 at 10:57 am
      The big fish such as Vijay Mallya and Lalit Modi have been allowed to escape.
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        AlsoIndian
        May 10, 2016 at 10:18 am
        Can they declare the names of the people from whom the money was recovered? I am sure it is the middle cl who has been raided and seized for their hard earnings while the big fishes are out of the net - SAFE AS ALWAYS. lt;br/gt;lt;br/gt;India is for ADANIS and AMBANIS....................
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          chaliya
          May 10, 2016 at 2:52 pm
          hehe he must have khujliwal logic in his DNA
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            chaliya
            May 10, 2016 at 2:51 pm
            really out of his 9k he was willing to give 8.5 and lalit modi was allowed to run away by his real masters aka Khangress. Still 7100, cr is excellent number don't be so pessimistic that you cant appreciate a good result
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