Govt preparing a no-harassment cell for people paying up ‘black money’

The centre being confident to bring black money back is strategizing ways that would not only speed up the process but make sure the ones willing to pay penalty and bring back the money goes under no trouble. The income-tax department has planned to open two centres in Delhi and Mumbai, which will facilitate non-intrusive processing of information in a focused manner.

As per a news report by The Economic Times, There have been deliberations at the highest level of the finance ministry on how to implement the new law. There are concerns over potential harassment and the government clearly wants to avoid any missteps on this count.

"There will be sensitivities. There will be a team of senior income-tax officials to implement the scheme,"an official told the ET adding that the cells will have a hotline with the Central Board of Direct Taxes (CBDT).

While the compliance window could be open for 2-3 months to declare undisclosed income and assets, a further six months could be provided to make tax payments. The window will be available only during the current financial year and will be notified soon after the law receives Presidential assent.

The Black Money (Undisclosed Foreign Income and Assets) And Imposition of Tax Bill, 2015, passed by both the Houses of Parliament, requires all resident Indians to declare foreign assets and income. The law, part of the Narendra Modi-led NDA government's large-scale crackdown on black money, provides a compliance window for all those who have undeclared foreign assets or income to come clean, after paying 30% tax and 30% penalty.

The news report reads, Swiss banks were reported to have deposits of Rs 14,100 crore from Indians, up from Rs 8,547 crore a year ago at the end of 2013. It is not clear how much of this is black money in the sense of being proceeds of tax evasion or crime. Global Financial Integrity estimates an average $44 billion outflow from India every year between 2003 and 2012.