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The Government on Monday announced a slew of measures to tackle the problem of black money and repatriate the money back into the country.
The measures include a five-fold strategy which envisages broad international co-operation as well as strengthening the national legislative framework.
The Finance Ministry has also commissioned a study on black money held within and outside the country. The study would also suggest methods to tax and repatriate the funds.
During his 2011-12 Budget speech, the Finance Minster, Mr Pranab Mukherjee, said that the Government has begun work on the five-fold strategy to tackle black money.
“The five-fold strategy which consists of joining the global crusade against ‘black money', creating an appropriate legislative framework, setting up institutions for dealing with illicit funds, developing systems for implementation and imparting skills to the manpower for effective action,” he said.
The Minister also said that India had secured membership of the Financial Action Task Force in June last year.
“This is an important initiative of G-20 for anti-money laundering,” he said adding that India has also joined the Task Force on Financial Integrity and Economic Development, Eurasian Group (EAG) and Global Forum on Transparency and Exchange of Information for Tax Purposes.
India has also concluded discussions for 11 Tax Information Exchange Agreements and 13 new Double Taxation Avoidance Agreements (DTAA) along with the revision of the provisions of the existing 10 DTAAs.
Elaborating on further measures taken, Mr Mukherjee said that Foreign Tax Division of CBDT has been strengthened to handle the increase in tax information exchange and transfer pricing issues.
“A dedicated cell for exchange of information is being set up to work on this agenda,” he added.
The Minister said that drug trafficking is a major contributor to the generation of black money.
In order to try to prevent drug trafficking, Mr Mukherjee said that a comprehensive national policy would be announced soon.
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