indian_foxhound
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Finance minister P Chidambaram is likely to reveal
a new estimate of Indias unaccounted black
money, most of it stashed abroad, in the budget
session and follow it up with a plan to hold it to
account, top officials told HT. The new estimates, the first since 1985, have been compiled at the governments behest by three think-tanks,
the National Council for Applied Economic
Research (NCAER), National Institute of Public
Finance and Policy (NIPFP), and National Institute
of Financial Management (NIFM). This report, submitted to the government in
December, is speculated to have pegged the size
of black economy at about 30% of Indias gross
domestic product (GDP) or about Rs. 25 lakh
crore. About a third of Indias black money transactions
are believed to be in real estate, followed by
manufacturing and shopping for gold and
consumer goods. The Centre has tracked Rs. 50,000 crore in
undisclosed incomes over three years, while tax
evasion worth more than Rs. 1,000 crore has
been detected from inputs from foreign
countries. The revenue department is pursuing 50,000
pieces of information on suspicious transactions
received from overseas and domestic agencies. Nearly 12,500 inputs on assets and payments
received by Indian citizens in several countries
have been obtained, which are now under
different stages of processing and investigation. The BJP, in a 2011 report, had estimated Indias
black economy to be worth around $500 billion
and $1.4 trillion or about between Rs. 27.5 lakh
crore and Rs. 74 lakh crore, while US think-tank
Global Financial Integrity had estimated India had
lost $123 billion ( Rs. 6.76 lakh crore) in "black money" in 2001-10. This is money that is earned and transferred
illegally abroad in tax havens, such as Cayman
Islands, typically to avoid taxes. Viewed as going hand in hand with corruption,
black money had been at the top of the agenda
of widespread public protests last year. These sums, compared to India's total annual
welfare spending of about Rs. 3 lakh crore, are
staggering. If hidden incomes of Rs. 25 lakh crore were to be
disclosed and taxed at 30%, it would generate Rs.
8.5 lakh crore, enough to build a 2,000-bed
super-specialty hospital in each of Indias 626
districts. Alternately, it could offer a zero-tax year for all
individuals and companies, and still enable a
sufficient budget that funds all expenses,
including salaries and welfare schemes. The government has introduced compulsory
reporting in case assets held abroad and also
started tax collection at source in case of
purchases in cash of gold or jewellery in certain
cases.
http://www.hindustantimes.com/business-news/WorldEconomy/India-s-black-money-pegged-at-Rs-25-lakh-cr/Article1-1001949.aspx
a new estimate of Indias unaccounted black
money, most of it stashed abroad, in the budget
session and follow it up with a plan to hold it to
account, top officials told HT. The new estimates, the first since 1985, have been compiled at the governments behest by three think-tanks,
the National Council for Applied Economic
Research (NCAER), National Institute of Public
Finance and Policy (NIPFP), and National Institute
of Financial Management (NIFM). This report, submitted to the government in
December, is speculated to have pegged the size
of black economy at about 30% of Indias gross
domestic product (GDP) or about Rs. 25 lakh
crore. About a third of Indias black money transactions
are believed to be in real estate, followed by
manufacturing and shopping for gold and
consumer goods. The Centre has tracked Rs. 50,000 crore in
undisclosed incomes over three years, while tax
evasion worth more than Rs. 1,000 crore has
been detected from inputs from foreign
countries. The revenue department is pursuing 50,000
pieces of information on suspicious transactions
received from overseas and domestic agencies. Nearly 12,500 inputs on assets and payments
received by Indian citizens in several countries
have been obtained, which are now under
different stages of processing and investigation. The BJP, in a 2011 report, had estimated Indias
black economy to be worth around $500 billion
and $1.4 trillion or about between Rs. 27.5 lakh
crore and Rs. 74 lakh crore, while US think-tank
Global Financial Integrity had estimated India had
lost $123 billion ( Rs. 6.76 lakh crore) in "black money" in 2001-10. This is money that is earned and transferred
illegally abroad in tax havens, such as Cayman
Islands, typically to avoid taxes. Viewed as going hand in hand with corruption,
black money had been at the top of the agenda
of widespread public protests last year. These sums, compared to India's total annual
welfare spending of about Rs. 3 lakh crore, are
staggering. If hidden incomes of Rs. 25 lakh crore were to be
disclosed and taxed at 30%, it would generate Rs.
8.5 lakh crore, enough to build a 2,000-bed
super-specialty hospital in each of Indias 626
districts. Alternately, it could offer a zero-tax year for all
individuals and companies, and still enable a
sufficient budget that funds all expenses,
including salaries and welfare schemes. The government has introduced compulsory
reporting in case assets held abroad and also
started tax collection at source in case of
purchases in cash of gold or jewellery in certain
cases.
http://www.hindustantimes.com/business-news/WorldEconomy/India-s-black-money-pegged-at-Rs-25-lakh-cr/Article1-1001949.aspx
