Union cabinet has approved a stringent legislation to curb black money and illegal wealth stashed abroad. The bill will be introduced in the current session of Parliament. The provisions of the bill are as mentioned below:

1. Concealment of income and assets and evasion of tax in relation to foreign assets will invite a rigorous punishment of ten years.

2. The offence made non-compoundable.

3. Offenders will not be permitted to approach the settlement commission.

4. The penalty for such concealment of income and assets will be at the rate of 300 per cent of tax. Normally, the maximum additions are 100 per cent.

5. Non-filing of returns or filing of returns is inadequate disclosure of foreign assets will invite a rigorous punishment of seven years.

6. The undisclosed foreign income will also be taxable at the maximum marginal rate with no exemptions or reductions.

7. Foreign assets are to be mandatorily required to file return even if there is no taxable income.

8. Not only individuals but entities, banks, financial institutions have all been covered under this law.

9. Opening foreign accounts would be mandatorily required to disclose it before income tax authorities.

10. These offences will also be made punishable under the existing prevention of money laundering act.

11. This will enable enforcement agencies to attach and confiscate assets held abroad and launch prosecution against the person and entities.

Bringing back black money stashed abroad has been a key promise of the Narendra Modi government and its first Cabinet decision was to announce the setting up of a SIT to probe black money cases. This right step will definitely benefit the honest tax payers and punish the offenders. The seizing of black money will also power-up the Indian economy.

By Premji