Union Budget 2012-13- Curbing the Black Money

Curbing the Black Money A Priority Concern for the Government; Number of Proactive Steps To Tackle the Malaise Announced; White Paper to be Laid in Current Session Itself: Finance Ministry 

The Budget proposals envision a multi-pronged strategy to prevent the generation and circulation of black money and its illegitimate transfer outside India.  Laying a special emphasis on the issue, the Finance Minister ShriPranab Mukherjee also proposed to lay a white paper on black money on the Table of the House in the current session of Parliament.  Shri Mukherjee has announced an advancement in tracking the trail of black money menace.  The following has been already done:

1.      82 Double Taxation Avoidance Agreements (DTAA) and 17 Tax Information Exchange Agreements (TIEA) have been finalized and information regarding bank accounts and assets held by Indians abroad has started flowing in.  In some cases prosecution will be initiated;

2.      Dedicated exchange of information cell for speedy exchange of tax information with treaty countries is fully functional in CBDT;

3.      India became the 33^rd signatory of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters; and

4.      Directorate of Income Tax Criminal Investigation has been established in CBDT. 

To ensure transparency and efficiency in the public procurement process, a Bill is to be introduced in the Budget Session of Parliament as announced by the Finance Minister today as part of his budget speech.  The Finance Minister also informed the House that the following legislative measures for strengthening anti-corruption framework are in various stages of enactment:

1.      Prevention of Money Laundering (Amendment) Bill, 2011 introduced in Parliament with a view to bring certain provisions of the act in line with global standards;

2.      BenamiTransactions  (Prohibition) Bill, 2011 is currently being examined by the Standing Committee on Finance.  It would replace the ‘Benami Transactions (Prohibition) Act, 1988; and

3.      National Drugs and Psychotropic Substances (Amendment) Bill, 2011 introduced in Parliament with a view to strengthen legal provisions for implementation of the national policy on Narcotic Drugs and Psychotropic Substances.