This refers to the report "Reveal entire black money list: SC to govt" (October 29). The Supreme Court's order to the government to disclose all the names being investigated for allegedly stashing black money abroad is laudable. It has left no scope for the government to pick and choose certain names that will be disclosed to the court and holding back others on the pretext of treaties with foreign countries.
However, it is bewildering why the whole matter of black money, whether it is within India or abroad, is being seen in the context of tax-evasion only by the government as well as by the Supreme Court. There are two kinds of black money: one that has been earned through legal means but not declared for tax purposes and the other that has been earned by illegal means. The undeclared money earned through legal means will become legal after being subject to tax and penalty according to the rules. But the money earned through illegal means such as misuse of authority, bribe, extortion, smuggling, drug trafficking and so on cannot become legal by simply taxing it. It still remains illegal and needs to be confiscated by the government. It is, therefore, necessary to examine the source of the money in each case and determine whether it is a case for taxation or confiscation.
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However, it is bewildering why the whole matter of black money, whether it is within India or abroad, is being seen in the context of tax-evasion only by the government as well as by the Supreme Court. There are two kinds of black money: one that has been earned through legal means but not declared for tax purposes and the other that has been earned by illegal means. The undeclared money earned through legal means will become legal after being subject to tax and penalty according to the rules. But the money earned through illegal means such as misuse of authority, bribe, extortion, smuggling, drug trafficking and so on cannot become legal by simply taxing it. It still remains illegal and needs to be confiscated by the government. It is, therefore, necessary to examine the source of the money in each case and determine whether it is a case for taxation or confiscation.
M C Joshi Lucknow
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number