Union Cabinet gives nod to black money bill
Union Cabinet has cleared the black money bill to curb the menace of black money in the country. Decision in this regard was taken at the cabinet meeting in New Delhi.
Union Government is seeking to introduce this bill the current budget session of Parliament.
Some provisions of bill
- The proposed bill gives powers to tax authorities to track and deal with illegal wealth stashed abroad.
- Under the provisions of the new Bill, the offences related to black money will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission.
- The bill also has provision of punishment to deal with the black money cases. It proposes penalty at the rate of 300 per cent of taxes to be levied on the concealed income and assets, in addition to 10 years rigorous imprisonment.
Union Cabinet also gave its nod for signing of an agreement with the US on the Foreign Account Tax Compliance Act (FATCA). The agreement will enable India to acquire information on big foreign transactions and indirectly curb black money stashing.
Apart from these decisions, Union Cabinet also approved to release of 33,000 crore rupees in tranches to states and Union Territories (UTs). These tranches will provide compensation to states and UTs for revenue loss on account of phasing out of Centre Sales Tax, CST for the three financial years up to 2012-2013.