To curb the Black Money, the Income Tax Department has started doing investigations on illegal funds and properties stashed abroad by Indians. It has been done through anti-black money drive. The tax officials stated to the tax department that they might elicit the new anti-black money law to take some strict actions in various cases.
The tax department mainly targeting “thousands of Indians”. In respect to finding out Black Money, the IT department has commenced investigations in coordination with the foreign counterparts on transactions relating to offshore bank deposits and purchase of assets.
Sushil Chandra, Chairman of The Central Board of Direct Taxes has officially announced the move but he has not revealed more information about this case.
The financial intelligence unit (FIU) is also under works to find out any such cases related to the foreign properties of Indian origin. The department sent notices to individuals and different category of taxpayers that they must show the detail explanation of their transaction, said officials.
It has been observed by the department in investigations that a number of cases are of prominent and high-profile people, whereas numerous high-net-worth individuals are under observation.
The tax officials stated that the strict criminal actions will be taken against the taxpayers who have evaded taxes or not shown appropriate income in the income tax returns (ITRs) under the new anti-black money law.
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act being implemented by the Indian Government in 2015 with an aim to curb black money, or undisclosed foreign assets and income and imposes tax and penalty on such income.
Also, the law will go through all the foreign illegal assets by Indian origins which were earlier probed by the Income Tax Act, 1961.
Under the new Black Money law, the criminals will have to pay abrupt 120 percent tax as a penalty on undisclosed foreign assets and income, apart from the imprisonment of 1 year.
