Avoid over-kill and rush job in proposed law on foreign assets concealment: ASSOCHAM

Lending India Inc's full support to the government's measures to end the menace of black money, ASSOCHAM said the issue should be approached in a scientific and logical way to ensure that the proposed legislation on concealment on foreign assets does not go in for the over-kill and the genuine business or individual transactions are not subjected to minute scrutiny of the tax inspectors.

"By all means the government should make tough laws , but then to prevent the misuse of the same , the rules and the procedures should be very simple, easy to understand and be not at all left to the discretion of the assessing officers. They should not be left to interpretation. Every minute detail should be written in the statute-otherwise, the amendments in FEMA may lead it back to the draconian days of FERA,'' ASSOCHAM Secretary General Mr D S Rawat said.

He said while the Finance Minister Mr Arun Jaitley's announcement that the government would bring in Bills on Foreign Assets and Benami transactions are welcome moves, the proposed bills should be well debated in public domain, top experts in civil and criminal jurisprudence with knowledge of the national and international laws should be consulted. No rush job is advisable.

The stakeholders' consultations should be wide enough. '' It should not so happen that we go in over-kill and the news laws themselves become a main source of corruption...That danger could be real,'' Mr Rawat said.

The ASSOCHAM Secretary General said the Indian economy is integrated with the global economy to extent of over USD one billion or over 50 per cent of its size. Lakhs of Indian professionals, students, corporate leaders travel all over the world and do business transactions or their professional pursuits tax compliance has to be done not only in India but also in the host countries and it could be cumbersome and complicated jobs requiring top knowledge and expert advice.

The problem could be more for the professionals and small and medium enterprises who cannot afford expensive consultancy advice. ''Thus, while as a nation we stand committed to eradication of black money and corruption, we should not make business eco system adversarial,'' said Mr Rawat.

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