Finance Minister Arun Jaitley on Friday said the government proposes to push for new law in the Lok Sabha next week. This came a day after the Income tax department tightened its probe on the ‘black money’ or unaccounted money of Indian nationals stashed in overseas banks by initiating the proceedings against 121 cases in various courts across the country.
Pointing out a stern warning to offenders, the Finance Minister said it would not be possible for anyone to hide unaccounted wealth as the international community is planning to put in place a mechanism for automatic exchange of information by 2017.
“Next week, I intend to take up before Parliament the law with regard to taxation of undisclosed assets and incomes abroad,” Jaitley said while addressing the ‘Enforcement Day’ function organised by the Directorate of Enforcement.
The government in March introduced ‘The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015′ which provides for heavy penalty and stiff punishment of up to 10 years for stashing unaccounted funds abroad. The bill will also provide a window to help persons having such funds abroad to come clean by paying tax and penalty.
“There are large number of cases…prosecutions against those offenders have been filed in last few months. The assessments of hundreds of those cases have been completed,” the FM said.
According to the government, it will now become difficult for people to hide wealth abroad as the international community including G-20 leaders have begun to take various steps to counter stashing of unaccounted wealth.
Jaitley stressed that India is foremost among a large number of countries that are taking interest in the G-20 initiative on automatic transmission of information with regard to monetary transaction.
“By 2017, the target is that all transactions would become transparent. Each country would go out of way to cooperate with us… By 2017, we are going to make it extremely risky for anybody to have unlawful assets or unlawful transaction of money,” he told the meeting.