New Delhi, Feb 28 (IANS) Finance Minister Arun Jaitley Saturday unveiled a slew of stringent steps to battle black money stashed abroad, including a new law that will entail rigorous imprisonment of up to 10 years and a penalty of 300 percent on its perpetrators.
Those evading tax by sending money to foreign countries will not be allowed to approach the Settlement Commission too, Jaitley told parliament while announcing his 2014-15 annual budget.
Two bills -- one on illegal money stashed abroad and another to curb 'benami' transactions within the country -- are likely to be brought in the ongoing budget session of parliament, he said.
The issue of black money, unearthing which was a major election promise of the Bharatiya Janata Party, figured prominently in Jaitley's speech.
BJP president Amit Shah said the steps will effectively check black money.
Congress spokesperson Rajeev Gowda said the measures can be useful only in the long term, and little had been done to fulfill the pre-poll promises made by the BJP.
Giving details of the measures in the proposed bill on money stashed abroad, Jaitley said that not filing income tax returns or filing them with inadequate disclosures would lead to rigorous imprisonment of up to seven years.
Undisclosed income from any foreign assets would be taxable at the maximum marginal rate.
It also becomes mandatory to file returns vis-a-vis foreign assets.
If an offence is detected, banks, financial institutions and individuals will all be liable for prosecution and penalty.
Concealment or income or evasion of tax in relation to a foreign asset will become an offence under the Prevention of Money Laundering Act (PML Act), 2002, the minister said.
The definition of 'proceeds of crime' under PMLA would be amended to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.
The Foreign Exchange Management Act (FEMA) would also be amended.
Jaitley outlined the steps taken by the Narendra Modi government since it took power last year and also the steps being planned to tackle black money stashed abroad -- and generated within India.
Amendments have been proposed in the Income Tax Act prohibiting acceptance or repayment of advance in cash of Rs.20,000 or more for any transaction in immovable property. Violation would invite penalties of equal amount.
It would become mandatory to quote the Permanent Account Number (PAN) for any purchase or sale exceeding Rs.1 lakh.
He said false declaration in any business relating to customs will "be predicate offence" under the Money Laundering Act.
The minister said black money eats into the vitals of the economy and society and the problems of poverty and inequity cannot be eliminated till the problem was firmly dealt with.
"Investigation into cases of undisclosed foreign assets has been accorded the highest priority, resulting in detection of substantial amounts of unreported income," Jaitley said.
He said a new structure was being put in place including electronic filing of statements by reporting entities to ensure seamless integration of data and more effective enforcement.
"Tracking down and bringing back the wealth which legitimately belongs to the country is our abiding commitment to the country," he said to loud thumping of desks by the treasury benches.
Referring to the proposed bill on benami transactions, he said it would enable confiscation of benami property and provide for prosecution.
It would block a major avenue for generation and holding of black money in the form of benami property, especially in real estate.
Shah said the budget will help check black money.
"Solid steps have been taken against those stashing black money in India and abroad," he said.
Congress leader Gowda said the measures announced by Jaitley "may be useful in going forward in the future" but not in "fulfilling the promises already made including bringing Rs.15 lakh in each account."
Adipurush Twitter Review: Prabhas Adipurush hit the theatres, see VFX and know how people reacted
Adipurush Twitter Review: Prabhas and Kriti Sanon starrer film 'Adipurush' fans were waiting for a long time. However, when the teaser of this film was released, people criticized the character of
Ranveer Allahbadia: Samay Raina and Ranveer Allahabadia will be banned, AICWA said- legal action should be taken.
The All India Cine Workers Association has strongly condemned the comments made by YouTuber Ranveer Allahabadia on 'India's Got Latent' and demanded a ban on them. The association also demanded legal
$62 million worth of crypto stolen: North Korean hackers break into video gaming company, cyber thieves are associated with the Kim government
The US Federal Investigation Agency (FBI) has uncovered a major cryptocurrency theft by North Korean hackers. The FBI has claimed that hackers affiliated with the Kim Jong Un government stole $62
G-20 countries have 80 percent of the global GDP, and more than half of the world's population also lives in these countries.
The command of G-20 has come into the hands of India. This responsibility will remain with India for the next year. 80 percent of the global GDP is concentrated in these 20 countries. More than half
China was scared of missiles that fired nuclear bombs from submarines: and sent a spy ship for surveillance; Wang-6 can hear conversations from 1,000 km away
India tested an interceptor missile in the Bay of Bengal on 2 November 2022. The long-range ballistic missile was to be tested on 11-12 November. For this NOTAM (Notice to Airmen) was also issued.
New threat: China will increase defense spending by 7.1 percent, the defense budget will be three times that of India
India's neighboring country China is going to present its budget today. In this budget, China has decided to increase defense spending because of the increasing threats to its security. According to
The number of new patients reached close to 2 lakh, more than double the earlier peak; Active cases will cross 15 lakh today
The corona epidemic in the country has taken a macabre form. In the last 24 hours, 1 lakh 99 thousand 376 new patients have been found. 93,418 recovered and 1,037 died. The new case figure has more
ED questioned Sonia again today: Heavy deployment of security forces outside Congress headquarters, also barricading; Sonia will go to ED office at 11 am
The ED will question Sonia Gandhi for the second time on Tuesday in the National Herald case. The Congress President will go to the ED office at 11 am to attend the inquiry. Earlier, on July 21, ED
WHO chief warned about Omicron, know what was the biggest shortcoming last year
The head of the World Health Organization, Tedros Aghnom Ghebreyesus, says that the cases of the new variant of the Korana virus may be less dangerous but they may not be very symptomatic. He also
PM Modi dedicated 35 specific varieties of crops to the country, said - it is necessary to increase the synergy of agriculture and science
Prime Minister Narendra Modi has given a big gift to the agriculture world of the country today. He dedicated 35 special varieties of crops to the nation today. Apart from this, the new campus of the
