The Modi government will crack down hard on people stacking black money. The Cabinet has approved a Bill, to be sent to the Lok Sabha and Rajya Sabha, which seeks harsh penalties and severe punishment for those with black money.
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 offence will be non-compoundable and offenders would not be permitted to approach the Settlement Commission.
Tax evaders will have to pay a heavy price to convert black money to white. If someone had a crore stashed away in 2008, they would land up paying Rs 1.5 crore after factoring in outstanding tax and penalties.
A new and comprehensive Benami Transactions (Prohibition) Bill is being introduced to prevent circulation of black money in the domestic economy. The Bill prohibits ‘acceptance or payment’ of an advance of Rs 20,000 or more in cash for the purchase of immovable property. So, it would not be easy escaping for those stashing away black money.
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