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Updated: August 11, 2012 03:15 IST

FinMin pulls out fact-sheet to counter Ramdev

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The Central Government on Friday said that it is pursuing 43,265 pieces of information regarding suspicious transactions received from overseas and domestic agencies. File photo
The Central Government on Friday said that it is pursuing 43,265 pieces of information regarding suspicious transactions received from overseas and domestic agencies. File photo

"Rs. 49,325-crore undisclosed income detected with the help of banking information from foreign countries"

In an apparent effort at taking the sting out of yoga guru Ramdev’s campaign against black money, the Union government on Friday revealed that an undisclosed income of more than Rs. 49,325 crore and tax evasion of Rs. 600 crore were detected following investigations based on banking information obtained from foreign countries.

Listing the measures the government had initiated since 2009 to combat black money, a 13-page fact-sheet, which the Ministry has released, details the significant progress achieved thus far through the multi-pronged exercise of the Central Board of Direct Taxes (CBDT) and the Income Tax Department.

The fact-sheet says the CBDT has detected an undisclosed income of over Rs. 32,000 crore, besides seizing assets valued at over Rs. 2,600 crore. This was in addition to the detection of an undisclosed income of Rs. 17,325 crore in surveys conducted on business premises by the IT Department.

The government is also pursuing 43,265 pieces of information on suspicious transactions received from overseas and domestic agencies. Of these, 12,500 pieces are about details of assets and payments received by Indian citizens in several countries. These “are now under different stages of processing and investigation.” And 30,765 pieces of domestic information about suspicious transactions, obtained by Financial Intelligence Units, are also under the scanner.

Furthermore, based on an investigation of information from Germany and France obtained under the revised Double Taxation Avoidance Agreement (DTAA), tax evasion totalling Rs.600 crore has been detected, and Rs. 200 crore has already been realised in taxes, the fact-sheet notes.

In particular, under the Exchange of Information article of the DTAA with France, the government has received information about Indians having bank accounts this financial year. In 219 cases, the Department has detected an undisclosed income totalling Rs. 565 crore, and Rs.181 crore in taxes has so far been realised.

“Focussed searches have been conducted in a number of cases in the current year on the basis of information received from foreign jurisdictions under the DTAAs,” the fact-sheet says. Till date, India has entered into revised DTAAs with 84 countries and has signed Tax Information Exchange Agreements (TIEAs) with nine tax havens.

Touching upon all aspects of black money, the fact-sheet notes that the Directorate of Transfer Pricing has detected mispricing of Rs. 67,768 crore since April last year, helping to prevent different companies from taking the profits out of the country. The Directorate of International Taxation has collected Rs. 48,951 crore in taxes from cross-border transactions in the last two financial years.

The fact-sheet appears to be aimed at countering the charges made by Ramdev and many of the details are a reiteration of what were given by the former Finance Minister, Pranab Mukherjee, to drive home his point that the government was indeed serious about checking black money.

The fact-sheet also refers to the five-pronged strategy the government adopted, including the creation of an appropriate legislative framework and setting up of institutions to effectively tackle the problem. Among these are a study of unaccounted income and wealth, both in and outside the country, by three national institutes.

The study is being conducted by the National Council of Applied Economic Research, the National Institute of Public Finance and Policy and the National Institute of Financial Management. It will be completed by December-end.

The report of the committee, headed by the CBDT Chairman, which was set up to examine the measures to strengthen the legal and administrative framework to deal with black money, has been sent to different Ministries and organisations and the State governments for action, the fact-sheet notes.

The Ministry has also sought to list the amendments that have been made through the Finance Act, 2012, to deal with the problem. Among the other measures are introduction of the General Anti Avoidance Rules (GAAR) to counter “Aggressive Tax Avoidance Schemes” and allowing for reopening of assessment up to 16 years of assets held abroad.

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Ok . We agree efforts are made to search black money in various countries,particularly in those who have given us information officially in writing. Let the Govt tell us its efforts to get such information from Switzerland .Let them get the information about full operation of accounts to assess the tax liability. Bye the by what happened to erears of 50 thousand crore of Pune based tax payer.Also Please inform why no action for all these years .

from:  adikey
Posted on: Aug 12, 2012 at 20:18 IST

many attempts have been made by government to bring out
the black money lying in foreign banks and also with people in India
in different forms.Now Yoga guru has once again raised his demand to
Government to finally bring black money kept in foreign banks and to
put it in central coffers. To counter the demand of the Baba ,
Government is once again brought out a fact sheet which reveals the
different actions taken to bring out black money and legislation
passed to curb black money. However no concrete results have been
achieved.The lok pal bill is in select committee is not making any
progress. Baba,s final attempt is shaping in the form of a "Maha
kranti"which will rise from Ramlila grounds is planned and announced.
Government will use all resourses to counter the demand and tell the
public what has been done by them .The government has to do something
convincingly to counter the Baba's challenge. One has to wait and

from:  E.Sivasankaran
Posted on: Aug 12, 2012 at 15:57 IST

Well done CBDT for taking a tough stance against black money. This news is a real slap in the face of those who say the govt isn't acting against money laundering.

from:  Ram Rajesh
Posted on: Aug 10, 2012 at 22:24 IST

When I was a child a read a notice on the wall of Andhra Bank inside in a small town " If any one with draw more than 50,000 INR, has to inform bank about TAX ID(PAN) to update Income Tax dept. What is government(all dept concerned) doing when some one take crores of rupees in aeroplanes/ships/truck to other nations from India? If Government failed to do so, why do we start a BANK like SWISS BANK in India? Atleast, all black money also will stay in India and money will be circulated within country rather than go out?

from:  kumar
Posted on: Aug 10, 2012 at 22:04 IST

The general public are now fully convinced beyond doubt that the present
Government most of whose members are themselves corruption-ridden will
deliberately avoid taking any positive steps to bring back black money slashed
abroad under some pretext or the other. The days of feeding the public with some
puerile statistics in the shape of white paper are over and they will give a fitting
reply in the general elections in 2014.

Posted on: Aug 10, 2012 at 21:25 IST

Personally this is simply to hoodwink the ordinary people , how will the
BABU's take action against themselves, suspect bulk of the funds in
overseas accounts would be held in large part by the high and middle
raking bureaucrats and their political masters !

from:  prakash
Posted on: Aug 10, 2012 at 21:05 IST

The black money issue is unnecessarily being debated, drawn for years
together. We are naive like some of our most respected leaders. It may
be very difficult for a common man to prove his belief but all common
people of India believes that from top to bottom and across point to
point all politicians are involved in black money stashing. The media,
may be are having some compulsions to take the government version at
face value.

from:  mvrangaraajan
Posted on: Aug 10, 2012 at 20:59 IST

So, what happened with the 2G money trail from Dubai? Could you please
elaborate on the business involved in the scam?

from:  Krishna S Bala
Posted on: Aug 10, 2012 at 20:43 IST

It is heartening to find the government has announced the detection of
Rs.49,325 crores as undisclosed income and also Rs.600 crores as tax
evasion on inputs from abroad. One would rather expect the government
to be more transparent by announcing the names of the defaulters too ,
as this might act as a deterrent. They should also announce the
information detailing from whom the amounts have been seized. Public
no doubt has a right to know.

Posted on: Aug 10, 2012 at 20:43 IST

First I would like to congratulate Central Board of Direct Taxes (CBDT). Good Job!!! I am not sure if this was an effect of Ramdev's fast. Although it cannot be denied that movements by Ramdev and Anna have pushed the beauraucratic machinery to do its job. The expectations of these movements are unrealistic and sometimes unconstitutional but they surely have made the government more responsive something which PM Manmohan Singh himself had stated (about the importance of the responsiveness of the government) before the start of UPA II.

from:  Nikhil K
Posted on: Aug 10, 2012 at 20:42 IST

Finance ministry is very clever not to disclose the amount of money being probed in the nearly one lakh (43,265+12,000+30,765) "pieces" of deals for investigating the black money. Even if we foolishly assume that only Rs 1 crore per "piece" is the amount, public would have realised the magnitude of Rs one lakh crores involved which the government is brazenly hiding from the nation.

from:  MVJRao
Posted on: Aug 10, 2012 at 20:35 IST

Why there is not much support from media,political parties,celebrity,educated people(IIT,IIM) Baba Ramdev is a true crusader of corrption and he is a lone fighter already his close aide Balkrishnan is in Jail. I will request the reader to put some comments here and make his effort as headlines.

from:  syam
Posted on: Aug 10, 2012 at 20:23 IST

CBDT failed to detect black money stashed in overseas banks prior to 2009.This white paper is just to dent current fast By Baba Ramdev.Strong political will is needed to bring back black money acccumulated over the past sixty years. By the time the government takes action based on CBDT report( not solid evidence) the money will be gone to overseas banks.

from:  vijayaraghavan
Posted on: Aug 10, 2012 at 18:48 IST
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