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Govt unearths indirect tax evasion of Rs 50,000 cr

Finance Ministry says crackdown on black money has led to seizing of Rs 3,963 crore of smuggled goods

Policy Pulse
Publish Date: May 10 2016 1:32PM | Updated Date: May 10 2016 2:17PM

Govt unearths indirect tax evasion of Rs 50,000 cr

Not less than Rs 50,000 crore of indirect tax evasion and another Rs 21,000 crore of undisclosed income has been unearthed by Centre in last years. 

 
In a statement, Finance Ministry said crackdown on black money has led to seizing of Rs 3,963 crore of smuggled goods in two years, a 32 percent increase over a similar earlier period. 
 
"Enhanced enforcement measures have resulted in unearthing of tax evasion of approximately Rs 50,000 crore of indirect taxes and undisclosed income of Rs 21,000 crore," it said. 
 
Listing measures taken by government to control menace of black money both in and outside the country, it said a new Blackmoney Act has been enacted with tough penalty provisions. 
 
A special investigation team has also been constituted, chaired by ex-Supreme Court Judge M B Shah. 
 
"Many recommendations of SIT have been implemented since then," it said 
 
Apart from this, a new Income Disclosure Scheme is formulated for those holding undeclared assets to pay a total tax and penalty of 45 per cent and come clean. 
 
Amendments have been made in Prevention of Money- laundering Act to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited in case of proceeds of crime. 
 
Also, "Section 8(8) has been inserted in PMLA providing for restoring confiscated property or part thereof, on the directions of Special Court to claimants with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offences of money laundering," the statement said. 
 
Section 132 of Customs Act which deals with offence relating to wrong declaration / documents in the transaction of any business relating to Customs has been made predicate offence under PMLA to curb trade based money laundering. 
 
"The offence of willful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been made a scheduled offence under PMLA," it said.