Govt to conduct statistical study on black money

The government will conduct a statistical study on the amount of black money in the economy as it is negotiating its tax treaties with countries like Switzerland.

Sources in the Finance Ministry said there were figures suggesting the black money to be about 40 per cent of the Gross Domestic Product (GDP), but there was no authenticated update on it.

As the government is negotiating with various tax haven countries to unearth unaccounted money parked outside India, the study will include subjects like tax havens, tax treaties and the trends adopted by tax evaders in the country and around the world, they said.

The study will be conducted by economic experts and scholars in close coordination with the Income Tax Department.

Few studies earlier by economists have estimated that the black money in the country is around 40 per cent of the GDP. In the current scenario, there is no accurate study and the subject has seen a sea change over the time.

The government is also undertaking negotiation of the Double Taxation Avoidance Agreement (DTAA) treaty, which was signed in 1995, to enable India to seek details of specific cases where tax evaders money was lying in Swiss banks.

Expressing concern over tax havens, Finance Minister Pranab Mukherjee had recently said financial manipulations hit tax collections and could be detrimental to security interests.

"The opaque system of exchange of information in these tax havens and their non-compliant behaviour are matter of concern not only for revenue base but also linked to financing of activities which are detrimental to the national security interests," he had said.

Sources said the study will commence after the budget is presented.

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Printable version | Feb 18, 2020 9:19:45 PM |

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