456
June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 44Institutes Year Nature Unaccounted wealth
NIPFP 1997-2009 Illicit financial outflow out of the country 0.2% to 7.4% of GDP
NCAER 1980-2010 Wealth accumulated outside India USD 384 Billion to USD 490 Billion
NIFM 1990-2008 Illicit Outflow from India `9,41,837 crore or USD 216.48* Billion
1990-2008 Illicit outflow from the country 10% of estimated unaccounted income
*Present value (including opportunity cost)The revenue secretary had deposed that these
studies have reported a very huge variation
in estimation of unaccounted income ranging
from 7% to 120% of the reported GDP.Tackling the Menace of Unaccounted/
Black Income
4.In order to prevent the generation of black
money and its detection, various proactive
steps have been taken such as enactment of
GST Act, Black money Undisclosed Foreign
Income and assets) and Imposition of Tax
Act, 2015, Fugitive Economic Offenders Act,
2018, etc.,
In addition to these steps, various others
measures have also been taken to widen the
ambit of rules, plugging existing loopholes
and building capacity within the department
to ensure a holistic approach against the
generation, concealment and transmission of
black money. Some of these measures are:
(a) Expanding the ambit of TDS/TCS
(b) Implementing General Anti Avoidance
Rules (GAAR)
(c) Replacing Annual Information Return
(AIR)/ Central Information Branch (CIB)
regime with a new comprehensive and
wider coverage scheme - Statement of
Financial Transactions (SFT) regime.
(d) Disallowance of cash payments exceeding
`10,000
(e) Prohibition of cash receipt of `2 lakh
and more
(f) Limit on cash donation,
Additionally, the CBDT has a scheme of Non-
filers Monitoring System, which was launchedto have focuses attention on non-filers with
potential tax liabilities. Another project called
‘Project Insight’ was initiated to strengthen the
non-intrusive information driven approach for
improving compliance and effective utilization
of information in all areas of tax administration.
The ‘E-Sahyog’ Pilot was also launched in
2015 as a pilot project to enable small tax
payers in submitting online response, in cases
involving information mismatch, without any
need to come to the Income-tax Office.
Various measures have also been taken for
using international platform for achieving
domestic strategies aiming at curbing black
money generation within the country. Those
measures include signing of tax treaties
framework with 146 foreign jurisdictions,
signing of Inter-Governmental Agreement
between India and USA for implementation
of Foreign Account Tax Compliance Act
(FATCA), amendment to India - Mauritius
Double Taxation Avoidance Agreement (DTAA)
to provide for source-based taxation of capital
gains on shares and income of banks, etc.Conclusion
Owing to paucity of time, only a limited
number of stakeholders were examined by the
Committee. This report might be considered
as a preliminary report. It is expected that
Ministry of Finance (Department of revenue)
shall continue its efforts with greater vigour
to unearth and bring to book unaccounted
income/wealth both within and outside the
Country. The detailed recommendations on Black
Money shall be formulated by the Committee
after conclusion of the examinations/evidences.
lllWHAT ‘STANDING COMMITTEE ON FINANCE’ SAID ABOUT BLACK MONEY IN ITS PRELIMINARY REPORT?