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Government wants to handle non-declarant foreign assets with hard stick

  • As the time given for declaration of undisclosed assets abroad is over, now the government desires to take stringent actions against those non declarants.
  • The government under able leadership of Mr. Modi has entered into agreements with G20 countries to exchange information of tax evaders. So government is confident of getting information about the non-declarants of foreign assets.
  • The previous government has dodged the issue for three years under some pretext though the Supreme Court is very serious on this matter.
  • 638 declarations have come to the tune of ₹.3770 crores before expiry of the stipulated time.
  • Now the non-declarants have to pay 30% as tax and 90% as penalty, and 10years of imprisonment.
  • It means they have to forego whatever they have non declared foreign assets and in addition 20% from declared assets.
  • As quoted by the Prime Minister during his independence speech, another 6500 crores of illegal money to be brought back into the stream of Indian economy.
  • The present government has initiated several steps to curb black money like liberalizing the tax laws and reducing the tax burden on the middle class salary earners and wish to put more in to their pocket by reducing tax slabs.
  • To curb black money transactions government wants to impose more restrictions on cash transactions. They want to introduce more payment gateways available to even common man and more circulation of plastic currency and making PAN as compulsory in all financial transactions.

Sources: Economic Times


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