Black money in Swiss banks has come down: Govt

CNN-IBN | 21-May 12:31 PM

New Delhi: Finance Minister Pranab Mukherjee tabled white paper on black money in Parliament on Monday. According to the white paper black money in bank accounts in Switzerland has reduced from Rs 23,373 crore in 2006 to Rs 9,295 crore in 2010.

Apart from the five per cent stamp duty and NOC from the tax department on property deals, the government has suggested tax incentives on use of credit/debit cards which leave money trail behind. The report suggests uniform five per cent property tax and TDS while buying and selling.

Mukherjee in the white paper said that the GST when implemented for gold jewellery sale purchase will help curb black money. Till GST is implemented the paper suggests that the Income Tax rule of giving PAN card details on transaction above 5 lakh be made mandatory.

The white paper also states that there will be no amnesty for black money

BJP leader LK Advani had raised the issue in Parliament following which the government decided to bring the white paper.

The paper gives a comprehensive strategy on bringing back black money stashed abroad. It also focuses on bullion, gold jewellery and the real estate sector and recommends more transparency in land dealings and regularisation of land registration.

The government had in 2011 formed a committee to examine the black money issue. The report was submitted to the finance ministry in early 2012.

The reports say it will provide information about the steps that the government has taken to tackle the issue but may not divulge estimates of the black money stashed abroad, as expert committees are yet to submit their reports.

The Government does not have an estimate of quantum of black money existing in the country. It has commissioned a study by three national level institutions on the issue. The institutes are National Institute of Public Finance and Policy; National Institute of Finance and Management and National Council for Applied Economic Research.

The study is expected to be completed by September 2012. The government had last year formed a committee under the chairmanship of CBDT chief to examine the issue. The report was submitted to the finance ministry earlier this year.

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