with various countries particularly tax havens would help India tackle black money menace effectively. “The income tax (I-T) department is engaged in tackling the black money issue,” the finance minister said on the sidelines of the all-India conference of chief commissioners and directors general of I-T.
The government has amended the DTAA by introducing a clause on seeking information regarding banking transactions abroad, especially in tax havens.
He said the government was amending Double Taxation Avoidance Agreements -DTAA by inserting a clause on information regarding banking sector and also entering into tax information exchange agreements -TIEA with several countries, including tax havens. Mr. Mukherjee said, with the help of these two important instruments income tax department will be able to track the stashed black money and impose tax on them . DTAAs have been amended with 40 nations and TIEA has been sealed with tax havens like Isle of Man, Bermuda and Bahamas. The finance minister also said with strengthening of the transfer pricing mechanism, the government has been able to prevent outflow of 33,000 crore rupees through various dubious practices which otherwise would have gone out of the country.
Mukherjee also said with strengthening of the transfer pricing mechanism, the government has been able to prevent outflow of Rs 33,000 crore.
“We have strengthened our transfer pricing mechanism through which we are preventing the transfers (of fund) through various dubious practices…Rs 33,000 crore have been detected, which otherwise would have gone out of the country,” he said.
Black money has become a big political issue in the country, with the opposition accusing the government of not doing enough to bring back the illegal money stashed abroad.