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Tuesday, 7 February 2017

Black Money: is demonetization has been failed?

Last year governrnent collected 2476 crore from black money !
Minister of State in the Ministry of Finance Arjun Ram Meghwal stated  in writtenreply to a question in Rajya Sabha Tuesday that there is no official estimation of percentage of black money held in India in cash. Althoug Government had been taken a hard step fo demonetization of 500 & 1000 notes.
The Government in a letter dated 7th November, 2016 requested RBI to consider cancellation of legal tender character of Rs. 500 and Rs. 1000 denomination with the objective to eliminate black money and to curb the infusion and circulation of Fake Indian Currency Notes (FICN).
He said that in the last financial year (2015-16) 648 disclosures involving undisclosed foreign assets worth Rs.4164 crore were made in the one-time three months’ compliance window ending 30th September 2015, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The amount collected by way of tax and penalty in such cases was about Rs.2476 crore.The Government has taken several measures to effectively tackle the issue of black money, particularly black money stashed away abroad. Such measures include policy-level initiatives, effective enforcement actions on the ground, putting in place robust legislative and administrative frameworks, systems and processes with due focus on capacity building and integration and mining of information through increasing use of information technology.

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