New Delhi, Aug 10 (ANI): The Government of India has commissioned a study on unaccounted income, wealth both inside and outside the country bringing out the nature of activities engendering money laundering and its ramifications on national security.
The study is being conducted by three national institutes; National Council of Applied Economic Research (NCAER), National Institute of Public Finance and Policy (NIPFP) and National Institute of Financial Management (NIFM); with inputs from various ministries/departments. The study will be completed by the end of 2012. Directorate of Criminal Investigation (DCI) has been created as an attached office of the Central Board of Direct Taxes (CBDT) to track financial transactions relating to illegal and criminal activities, including illicit cross-border transactions, from the direct tax angle and bring such activities to justice.
Creation of DCI is also in line with FATF (Financial Action Task Force) recommendations to exclusively deal with tax crimes, including direct taxes.
CBDT is coordinating with the Election Commission of India (ECI) for controlling political expenditure and verification of affidavits filed by candidates of political parties.
However, in order to strengthen the existing laws relating to black money, the Government constituted a Committee under the Chairman, CBDT to examine the measures to strengthen the existing legal and administrative framework to deal with the menace of generation of black money through illegal means.
The committee submitted its report to the government on March 29. The report has been sent to different ministries, organisations and state governments for necessary action.
The fact sheet released by the Government of India today, also provided the details of information received under DTAA and action taken . Information received from Germany and France has been investigated. Tax evasion of more than Rs.600 crore detected and taxes of Rs.200 crore has already been realized. Prosecution proceedings have been launched in 17 cases pertaining to LGT Bank accounts.
Assessment proceedings have been initiated in cases relating to HSBC accounts. Further information from outside the country is awaited in several cases. Information received from different countries under the automatic exchange of information arrangement is appropriately utilized for the purpose of investigation and assessment.n the last three financial years, the Investigation wing of the CBDT has detected undisclosed income of over Rs.32,000 crore besides seizing undisclosed assets valued at over Rs.2, 600 crore.
The Income Tax Department (ITD) has further detected undisclosed income of Rs.17, 325 crore in surveys conducted at business premises.
India's negotiations for Tax Information Exchange Agreement (TIEA) commenced with 25 more countries/jurisdictions in 2012. (ANI)