ICAI report on black money to be ready in Sept

The Institute of Chartered Accountants of India (ICAI) today said it would submit its report to the government in September, suggesting changes required in the key economic Acts such as Income Tax and FEMA to tackle the menace of black money and ways of retrieving it from tax havens abroad.

ICAI had said earlier this month that the report was expected in August.

A committee, headed by ICAI President G Ramaswamy, is studying India's Double Taxation Avoidance Treaty Agreements (DTAAs) with different nations, as well as various laws, to suggest the plugging of loopholes.

"The group would suggest ways to effectively deal with issues of tracking black money...Suggest amendments needed to DTAA to make inquiry into overseas bank accounts, amendments in FEMA, enquire into functioning of trusts, amendments to Foreign Contribution regulation Act," Ramaswamy told reporters here.

The committee, consisting of nine members of the ICAI's central council, would suggest ways for creating stringent disclosure norms for inflow/outflow of money as also the amendments needed for the Benami Transaction Act

The inputs and suggestions by ICAI would be submitted to the Central Board of Direct Taxes (CBDT) by September-end, Ramaswamy said.

The issue of tackling black money has erupted into a major controversy in India. Recently, a lobby group representing the Mauritius-linked global investors claimed that the island nation was cooperating in India's fight against black money and was fully 'clean and transparent' on this front.

Besides, the Supreme Court has appointed a Special Investigation Team for monitoring the probe related to black money stashed in foreign banks, and steps are being taken to bring it back.

The ICAI has over 1.73 lakh members and 8.74 lakh students.