CBDT panel seeks public suggestions to unearth black money

New Delhi, Jun 9 (PTI) With Indian government under
pressure to deal with the menace of black money, a high level
panel Thursday decided to seek suggestions directly from the
public to strengthen the laws to unearth the unaccounted
wealth.
"Everybody should get a chance to give his or her
views on this (black money) issue," a senior Indian finance
ministry official privy to the development said after the
first meeting of the panel, headed by Central Board of Direct
Taxes (CBDT) Chairman Prakash Chandra.
The panel decided to create a web-based platform to
seek comments from all stakeholders, including experts,
bankers, industry and the general public.
At the meeting, the participating wings of the
Government were asked to review the laws being enforced by
them and suggest changes required to "curb the generation of
black money, its transfer abroad and recovery", the official
said.
The meeting was held against the backdrop of the
government facing flak from civil society and opposition for
not doing enough to deal with the menace of black money.
The committee, consisting senior officials from the
CBDT, Enforcement Directorate, Directorate of Revenue
Intelligence, Currency unit and financial intelligence
department, would submit its report in six months.
The legislations enforced by these wings of the
finance ministry, including Foreign Exchange Management Act
(FEMA), Prevention of Money Laundering Act (PMLA), Income Tax
Act and laws related with customs and excise would be
reviewed.
"The panel may also suggest new laws," the official
added. While the exact amount of black money is yet to be
ascertained, sources said estimates suggest that 50 per cent
of the money in circulation is 'black money', including 'fake
currency.'
Meanwhile, sources in the Indian Finance Ministry said
the Committee is likely to meet again next week.
The ministry has asked the panel to suggest legal and
administrative framework to deal with the black money menace.
The panel has been asked to suggest ways to declare
the illegally generated wealth as "national asset", enact or
amend existing laws to confiscate and recover such assets and
provide for "exemplary" punishment against its perpetrators.
The government, meanwhile, has set up a committee to
ascertain the amount of black money, both within India and
that which is stashed away in foreign accounts.
Another panel to suggest ways to trace tax defaulters,
reveal their identity to the public and recover taxes is also
in place.