Report on quantum of black money under examination: Fin Min

Reports on quantum of black money stashed in India and abroad are under examination of the government, about a year and a half after submission, the Finance Ministry has said.
The previous UPA government had in March 2011 commissioned studies, by Delhi-based National Institute of Public Finance and Policy (NIPFP), National Council of Applied Economic Research (NCAER), and National Institute of Financial Management (NIFM) at Faridabad, on estimation of unaccounted income or wealth both inside and outside the country.
These studies were expected to be completed within 18 months time.
Final reports of NIPFP, NCAER and NIFM were received on December 30, 2013, July 18, 2014 and August 21, 2014, respectively, the Ministry said.

"The reports are under examination of the government, inter alia, for formulation of the government's response. The reports along with the government's response thereon are to be placed before the Standing Committee on Finance as action taken report on their directions and recommendations in this regard," it said, replying to an RTI query filed by PTI.
Further details cannot be made available at this point of time as the information is exempt under Section 8 (1) (c) of the RTI Act, 2005 which bars disclosure of information which would cause a breach of privilege of Parliament, the reply said.

There is at present no official assessment on the quantum of black money in India and abroad.

The issue of black money has been continuously getting attention and Centre has been taking steps to get back illegal money. It had provided one-time window of three months -- July 1 to September 30, 2015 -- for foreign assets holders to declare such assets by paying a total of 60 per cent tax and penalty and escape stringent provisions under the new black money law.
Adhia said CBDT will come out with a set of Frequently
Asked Questions (FAQs) to make it easier of people to understand the provisions of the compliance window.
The government had in 2015 come out with a similar compliance window for foreign black money holders. A total of Rs 4,147 crore of undeclared wealth was declared during the 90-day window which ended September 30, 2015. At 60 per cent payout (30 per cent tax and 30 per cent penalty), the government got a net Rs 2,500 crore from the declarations.

Asked why the payout is less in the domestic black money window, Adhia said: "In the case of foreign black money, the government's ability to drag them is limited compared to domestic black money. In the case of domestic black money, our hands are long enough to catch them."
Articulating steps taken by the government to curb black money, he said the requirement of mandatory furnishing of PAN for money transactions above certain limits is a way of making people report their income legitimately.
"Unlike what people think that nothing is happening in black money, a lot of search and seizure work is happening. In the last two years, about Rs 20,000 crore undisclosed income is declared by them," Adhia added.

KPMG in India Partner (tax) Parizad Sirwalla said, "Currently, the Income-Tax Act provides for prosecution ranging from 6 months to 7 years (where tax sought to be evaded exceeds Rs 25 lakh) and 3 months to 2 years (in other cases) for wilful attempt to evade taxes, penalty or interest or wilful failure to furnish return of income.