Under attack over unearthing black money, government today came out with a proposal for a comprehensive law to check the menace by providing for a jail term up to 10 years for hiding foreign assets.
Disclosing this while presenting the Union Budget, Finance Minister Arun Jaitley also said a host of other tough measures including dis-incentivising of cash dealings in real estate and other transactions will be put in place.
Besides framing new legislations, the government will also take steps to incentivise use of credit and debit cards and putting a cap on cash transactions. Quoting PAN will be mandatory for all sale and purchase of over ₹1 lakh, he said.
Presenting his first full-year budget, Jaitley said the first and foremost pillar of his tax proposals is to enacting a new law to effectively deal with the problem of black money which eats into the vitals of our economy and society.
“To this end, I propose to introduce a Bill in the current Session of Parliament,” he said.
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.
Further, the offence will be made non-compoundable and the offenders will not be permitted to approach the Settlement Commission.
As regards curbing domestic black money, a new and more comprehensive Benami Transactions (Prohibition) Bill will be introduced in the current session.
“This law will enable confiscation of benami property and provide for prosecution, thus blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate,” Jaitley said.
He also proposed to amend the Income-tax Act to prohibit “acceptance or payment” of an advance of ₹20,000 or more in cash for purchase of immovable property.
“Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of ₹1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions,” he said.