2019-06-29_Corporate_Professional_Today

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June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 42

The Standing Committee on Finance has prepared a Preliminary

Report on ‘Status of Unaccounted Income/Wealth both inside

and outside the Country’. The report has been tabled in the

Parliament on Monday, June 24, 2019.

The report consists of discussion on unaccounted income, its

estimation and measures taken by the Govt. to detect and

prevent generation of black money in India and outside India.

The report is based on the evidence of the representatives

of Ministry of Finance (Department of Revenue) and CBDT

taken by the Committee on 21 February, 2019. The Committee

has covered the following aspects in its report:

1. Meaning of Unaccounted Income and its Estimation


2. Unaccounted Income in India


3. Unaccounted Income outside India


4. Tackling the Menace of Unaccounted/Black Income
   The important aspects of the report are highlighted in the
   following paragraphs.

Unaccounted Income and its estimation

1. As per National Institute of Financial Management (NIFM),
   ‘Unaccounted Income’ is the income from those economic
   activities that circumvent or otherwise avoid Government
   regulations and taxation. This definition attempts to cover
   all illegal economic activities, i.e., trade with stolen goods,
   drug dealing, manufacturing, fraud, and other non-monetary
   illegal economic activities, i.e., Barter of drugs, stolen goods,
   smuggling, theft for own use, etc.

What ‘Standing Committee

on Finance’ said about Black

Money in its preliminary report?