ID :
241041
Mon, 05/21/2012 - 16:16
Auther :

India govt white paper to deal with black money

New Delhi, May 21 (PTI) Fast-track courts to expeditiously deal with financial offences and deterrent punishment for offenders and promotion of banking channels for transactions were among the measures proposed today in a multi-pronged strategy unveiled by the Indian government to curb black money menace in the country. The much-awaited 97-page white paper on black money tabled by Finance Minister Pranab Mukherjee in Lok Sabha, lower house of Parliament, however, did did not mention any names or provide an estimate of such funds within and outside the country. Improving the reporting and monitoring systems to track bullion and jewellery transactions and simple reporting systems in real estate deals to facilitate the development of a nationwide database were also urgently proposed in reducing flow of black money. Coming out with strategies under "four different pillars", the document said the introduction of the proposed goods and services tax(GST) would be a "major step" in integrating the efforts of different agencies dealing with black money. The white paper also made a case for preventing misuse of "off market" and "dabba trading" (“bucketing” where brokers route their client’s trades outside the stock/ commodity exchange) on equities and commodities market. Noting that India's Income Tax Act has made it mandatory to obtain the Income Tax Department issued PAN number or Form-60/Form-61 for purchase of bullion above Rs 500,000, the document said there is a need to "catch" all transactions and the best bet would be the proposed GST Act. The white paper quoted various estimates of other agencies on the issue of quantum of black money abroad. It made a reference provided to data provided by Swiss National Bank which said the bank deposits of Indians in Swiss banks have decreased from Rs 233.73 billion in 2006 to Rs 92.95 billion in 2010. The white paper said the Government will have to take a decision on whether India should have a revenue-sharing agreement with Switzerland from taxes on assets held by Indian residents in the European nation without learning the identity of the defaulting Indian residents. Switzerland and UK have a similar agreement. "The Government looks forward to discussion on this important issue within and outside Parliament before taking any further steps," it added. The white paper broadly came out with strategies on reducing disincentives against voluntary compliance, reforms in vulnerable sectors of the economy, creating effective credible deterrence and supportive measures. It said black money cannot be effectively fought unless the judicial machinery to deal with it is specialised and the trial of offences is expeditious and punishments exemplary. Referring to the issue of institutions like Lokpal and Lokayuktas (ombudsmen at national and state levels), the paper said, "(they) need to be put in place at the earliest ... to expedite investigations into cases of corruption and bring the guilty to justice." The document seeks to dispel the impression that government was not doing enough to deal with black money and talks about various policy options and strategies it has been pursuing to address the issue of corruption in public life. PTI

X