According to the government, there has been no estimate of black money in foreign accounts in the last 5 years.

According to the government, there has been no estimate of black money in foreign accounts in the last five years.

History of Black Money-

Black money is money earned on the black market that is not subject to income or other taxes in India. Unaccounted funds hidden from tax authorities are referred to as “black money.” Black money is amassed by criminals, smugglers, hoarders, tax evaders, and others who oppose theft. For vested interests, the criminals have accumulated 22,000 crores of rupees. According to writ petitions filed in the Supreme Court, the sum is even higher, at 300 lakh crores.

It’s unknown how much dirty money Indians have stashed in foreign banks. According to some estimates, Switzerland has $1.06 trillion to 1.4 trillion dollars kept illegally. Other reports, such as those from the Swiss Bankers Association and the Swiss Government, assert that these estimates are erroneous and contrived. The total sum held in all Swiss bank accounts by Indian individuals is around $2 billion.

The head of India’s Central Bureau of Investigation started in February 2012 that Indians have more illegal funds in international tax havens than any other country. The Indian government stated in parliament in March 2012 that the CBI director’s statement of $500 billion in illegal funds was an estimate based on a declaration made to India’s Supreme Court in July 2011.

The amount of Indian dirty money now held in Swiss and other offshore banks was estimated to be 300 lakh crores (US$1.5 trillion) in March 2018.

Current scenario in India-

The current Indian government has stated that there is no official estimate of how much black money has been held in foreign accounts over the last five years, even though the one-time three-month compliance window in 2015 yielded a total of 2,476 crores in tax and penalty revenue.

In response to a query during Rajya Sabha Question Hour, Minister of State for Finance Pankaj Chaudhary said that 648 disclosures involving undisclosed foreign assets worth Rs 4,164 crore were made in the one-time three-month compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which ended on September 30, 2015.

He went on to say that in such situations, the amount collected in tax and penalty was over 2,476 crore.

“There is no official estimate of how much black money has been held in offshore accounts during the last five years. The government, on the other hand, has taken a number of initiatives to combat black money abroad, all of which have had positive outcomes “In his written response, Mr Chaudhary stated.

He responded to a query about the amount of black money brought back to India from 2014 to November 30, 2021.

One of the primary election pledges of the current government, led by the BJP, which took power in May 2014, was to bring back black money deposited abroad.

According to the minister, the undeclared income of more than Rs 8,466 crore has been brought to tax, with a penalty of Rs 1,294 crore assessed so far on deposits made in unreported foreign bank accounts in “HSBC cases.”

According to Chaudhary, ongoing investigations into the instances exposed by the International Consortium of Investigative Journalists (ICIJ) have resulted in more than 11,010 crores in unreported overseas accounts.

In response to a query about what actions have been taken against people and companies whose names have been published in the Panama Papers, he said that in the Panama and Paradise Paper Leaks, total undisclosed credits totalling $20,353 crore had been detected concerning 930 India-linked entities.

“In the Panama and Paradise Paper Leaks, taxes collected so far total 153.88 crore. Furthermore, criminal prosecution complaints have been filed under the black money legislation in 52 cases of Panama and Paradise Paper Leaks. In addition, the act has resulted in the filing of 130 cases “In response, the minister stated.

Mr Chaudhary went on to say that the government has taken several initiatives to combat black money stashed abroad, all of which have shown beneficial outcomes.

The government has taken measures to combat black money, including establishing a multilateral regime for proactive sharing of financial information, establishing a special investigation team (SIT) on black money in May 2014, and enacting a stringent new law on black money that went into effect in July 2015, according to the minister.

Whenever truthful information about black money stashed overseas has been received, the government has taken proactive and practical steps, whether in the HSBC, ICIJ, Paradise Papers, or Panama Papers cases.

 

Inapplicable circumstances, he added, these processes include forming a multi-agency group, requesting definitive information from foreign jurisdictions, bringing black money under the relevant law for taxation, and commencing prosecutions against offenders.

edited and proofread by nikita sharma