FinMin sets up panel to suggest framework to seize black money

The Government is under immense pressure on the issue of black money not only from the Oppostion and civil society, but also from the Supreme Court.

The Committee headed by Central Board of Direct Taxes (CBDT) Chairman Sudhir Chandra will submit its report in six months, a Finance Ministry statement said.

"The Committee will examine the existing legal and administrative framework to deal with the menace of generation of black money..., including, inter alia, declaring wealth generated illegally as national asset and enanctingamending laws to confiscate and recover such assets," it said.

The Government had earlier also constituted a committee comprising heads of various probe agencies and specialised departments to monitor the investigation and initiate steps to bring back black money stashed in tax havens.

The Finance Ministry said the Committee headed by CBDT Chairman has been also been asked to examine ways to strengthen laws to stop illegal transfer of black money and its recovery.

The committee includes senior officials from the CBDT, Enforcement Directorate, Directorate of Revenue Intelligence, Currency unit and financial intelligence department.

CBDT's Commissioner of Income Tax (CIT-Investigation) would be the committee's Member Secretary.

Besides setting up specialised panels, the Government is also amending the existing Double Taxation Avoidance Agreements (DTAAs) with different countries and entering into Tax Information Exchange Agreements (TIEA) with tax havens.

Earlier, Finance Minister Pranab Mukherjee had said that the Government has adopted a five pronged strategy, including legislative reforms, to deal with the menace of black money.

A ministerial panel headed by Mukherjee is also looking into the issue of corruption.