Taxation
Jaitley asks taxmen to squeeze parallel economy
Finance Minister Arun Jaitley on Monday asked the Income Tax department to squeeze the parallel economy, also called black economy, in a fair manner without being harsh.
 
"The parallel economy has to be squeezed and this has to be done in a very fair manner, not in a harsh manner. In doing so, as senior officers you have to maintain the highest standard of integrity," Jaitley said, addressing the annual conference of senior officials of the Central Board of Direct Taxes (CBDT).
 
"Black money has to be squeezed," he said, adding that the government has taken a series of measures to curb black money, including passage of the black money law by parliament and the introduction of the Benami Transactions (Prohibition) Bill to deal with domestic illegal wealth.
 
"No honest taxpayer has anything to fear. It's (black money law) is targeted only against those who have stashed assets abroad," the finance minister said.
 
He said only those have to worry who had defied the system in the past and intend to defy the compliance window to come clean.
 
Earlier this month, parliament approved the Undisclosed Foreign Income and Assets Bill providing for heavy penalties for stashing black money away in foreign accounts. The Rajya Sabha passed the measure two days after the Lok Sabha did so.
 
"For the first time, unlawful, undisclosed income abroad has been taxed under this law at a tax rate of 30 percent with an additional 30 percent penalty on it," Jaitley had said replying to the parliamentary debate on the bill.
 
Explaining that a time-frame will be provided as a "compliance window" for declaring and paying penalty, Jaitley said that failure to meet the compliance timeline will attract an additional penalty of 90 percent for a total tax liability of 120 percent on the quantum of black money abroad.
 
The finance minister earlier this month warned corporates not to take unfair advantage of the liberalised tax environment.
 
"I think, for every assessee, every person in the commercial business also, it is a judgement call that in a liberal economic environment of reasonable and lower taxation rates, 'go straight'," he said at the foundation day celebrations of the Enforcement Directorate.
 
"And, therefore, if you transact within the limits of law, it is much safer. If you breach it, gone are the days where offences would go undetected," he added.
 
Admitting that there was no official estimation of black money within India or stashed away abroad, Jaitley also told parliament this month that the government was examining the reports of three institutes on the matter.
 
An unofficial estimate puts the illegal money stashed away overseas somewhere between $466 billion and $1.4 trillion.

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COMMENTS

Ganesh Kamat

2 years ago

GST=1 %of sale
For Rs.10L sale pay Rs.10K GST
Advisable to take1% from 20 Taxpayer
than 20% from One
If Taxpayers=40Cr
Tax collection=40L-Cr

Gopalakrishnan T V

2 years ago

The prevention of black money generation requires only small steps with very effective monitoring, follow up and supervision involving Information Technology and social auditing by people of eminence. The corrupt practices and irregularities widely practiced all around the trade and commerce need to be systematically fixed and it does not require super intelligence. The readiness of the Government is all that requires to fix black money generation.Involve people who aspire welfare for the pople and maintain honesty, integrity and sincerity and support the NDA's ideologies in curbing black money generation. The country can think of progress only if corrupt practices aiming at maximisation of black money generation are fully stopped with improved Governance standards and checks and balances to really fix the problem introduced.

Two dead, over 100 injured as Muri Express derails in UP
At least two people were killed and over 100 injured after eight coaches of the Ranchi-Jammu Tawi Muri Express derailed in Uttar Pradesh's Kaushambi district on Monday afternoon, officials said.
 
The accident occurred between the Sirathu and Athsarai railway stations in the Allahabad-Kanpur sector of the rail zone, 173 km from here. The toll is feared to go up, said officials.
 
Three general sleeper coaches - S5, S6, S7 - and three air-conditioned coaches - three-tier B1 and B2 and two-tier A1 - along with the pantry car derailed while one coach capsized and fell in a ditch nearby, a district official told IANS.
 
Local villagers rushed to the rescue even before officials of the district administration reached the spot. The state government has announced a compensation of Rs.2 lakh each to the families of those who died.
 
The office of the chief secretary said that Kaushambi and health department officials have been asked to ensure prompt relief and rescue operations. Chief Secretary Alok Ranjan is personally monitoring the situation, said a home department official. Chief Minister Akhilesh Yadav, who is in France on a four-day visit, has been apprised of the accident.
 
The North-Central Railways (NCR) has meanwhile set up a helpline - 1072 - where people after prefixing the local STD code can enquire about the passengers travelling on the train. A relief train along with a crane and cutters has also been rushed to the spot while senior railway officials were also at the spot, said railway PRO Anil Saxena. 
 
Additional Director General of Police, Law and Order, Daljeet Chowdhary said senior police officials have been sent to the accident site. 
 
According to sources, 40 'keys' of the rail track were found missing on the same spot Sunday and the local police had been apprised about the discovery by villagers, said sources, adding that even a heavy 'jack' was found along the railway track. Confirming this, a senior official said that all aspects including sabotage were being probed.
 
Traffic on the Allahabad-Kanpur railway sector has come to a halt following the derailment.

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