Centre unearths indirect tax evasion of Rs 50,000 crore

Centre unearths indirect tax evasion of Rs 50,000 crore

Seizes smuggled goods worth Rs 3,963 cr

Centre unearths indirect tax evasion of Rs 50,000 crore

In a step towards curbing black money, the government has unearthed indirect tax evasion of approximately Rs 50,000 crore and undisclosed income of Rs 21,000 crore in the past 2 years, according to the Finance Ministry.

Besides, it has seized smuggled goods worth Rs 3,963 crore. This is a 32% jump over the past 2 years. The ministry said that it has launched prosecution in 1,466 cases in 2014-15, as against 1169 in the previous 2 years.

Also, a Special Investigation Team has been constituted, chaired by former Supreme Court Judge M B Shah.

Besides, a new Income Disclosure Scheme is formulated for those holding undeclared assets to pay a total tax and penalty of 45% and come clean.

Amendments have been made in Prevention of Money Laundering Act (PMLA) to enable attachment and confiscation of equivalent assets in India, where the asset located abroad cannot be forfeited in case of proceeds of crime, the ministry said.

Imposition of Tax Act
“The offence of wilful 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.

Foreign Exchange Management Act (FEMA), 1999, has also been amended to provide for seizure and confiscation of value equivalent, situated in India, in case any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, in contravention of FEMA.