Cabinet approves Bill to curb black money menace

The Cabinet on Tuesday, in a bid to check the black money menace, approved a new Bill that would give more powers to the tax department in tracking illicit wealth stashed abroad and provide for strict penal actions for such offence.

Sources said that the Cabinet approved the Foreign Income and Undisclosed Assets (Imposition of New Tax) Bill, 2015 on Tuesday evening and it could be tabled in the Lok Sabha during the ongoing session.

Finance Minister Arun Jaitley had announced in his Budget speech on February 28 that the government would bring in a comprehensive law to check the black money menace by providing for a jail term of up to 10 years for hiding foreign assets and up to 300 per cent penalty.

"On black money, a new structure including e-filing and tracking down is our abiding commitment," he had said.

Jaitley had also said that a host of other tough measures including dis-incentivising of cash dealings in real estate and other transactions would be put in place.

Under the proposed law, concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with rigorous imprisonment of up to 10 years, the Finance Minister had said. Jaitley added that the offence would be made non-compoundable and the offenders would not be permitted to approach the Settlement Commission.

With regard to curbing domestic black money, he had said a new and more comprehensive Benami Transactions (Prohibition) Bill would be introduced in the ongoing session of Parliament.

Jaitley had also proposed to amend the Income-Tax Act to prohibit "acceptance or payment" of an advance of Rs 20,000 or more in cash for purchase of immovable property.