Par panel for coordination of probe agencies under FinMin

Active coordination among various agencies like RBI, SFIO, CBI and ED should be facilitated under Finance Ministry to deal with the menace of black money, a parliamentary panel said today.
To curb generation of unaccounted money in the first place, a multi-pronged and balanced approach comprising of policy, legislative as well as enforcement measures needs to be adopted in the long run, said the Standing Committee on Finance in its report tabled in Parliament.
"Active coordination among concerned enforcement/ regulatory/ investigation agencies like the FIU, RBI, SEBI, Income Tax, Central Excise and Customs, Service Tax, Enforcement Directorate, SFIO, CBI etc. Should be facilitated under the auspices of the Ministry of Finance," it said.

The panel also desired that enforcement of stringent legislations like the Narcotics and Psychotropic Substances Act, Foreign Exchange Management Act and Prevention of Money Laundering Act should also be tightened up.
The government has taken various steps, including setting up institutions to deal with illicit funds, imparting skills to the workforce for effective action and joining the global crusade against black money.
A Special Investigation Team (SIT) has also been set up.

"The Committee hope that the efforts to bring back the black/ unaccounted money stashed abroad as also to unearth black money within the country will yield positive results," the report said.

Referring to 'Search and Seizure Operations', the panel said the Revenue Department should not alienate the honest/ genuine taxpayer while stepping enforcement action against wilful or chronic evaders.
It also said that the Department must keep in mind that "zealous or high-pitched tax estimates made at the outset do not flounder at later stages".
Talking about undisputed or uncollected tax, it said the quantum in respect of both direct and indirect taxes has assumed alarming proportions during the last five years.
While taking a serious view of the laxity of the Department in collecting even undisputed taxes, the Committee recommend urgent, time bound and concrete action plan for recovery of the undisputed, yet uncollected tax revenue.