Lok Sabha clears Bill to check black money

Indians holding confidential income and assets abroad are set to face hefty financial and criminal penalties with the Lok Sabha tonight passing a historic Bill to deter evaders from stashing black money overseas.

Tax evasion on foreign assets will carry a punishment of three to 10 years rigorous imprisonment with Finance Minister Arun Jaitley telling the House that India had joined the global efforts under G-20 for automatic exchange of information on black money holders abroad – something which will appear by 2017.

“Time for black money-holders is running out of hand,” Finance Minister said when Lok Sabha approved the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill-2015 by a voice vote.

The approval came after Jaitley rejected opposition Congress’ charge that the Bill had “fatal flaws” and should be sent for parliamentary committee audit. “You have been mocking us for 11 months for not taking steps on black money.

And now that we have carried the Bill, do not create cold feet, walk the talk rather than getting into technicalities of referring the Bill to a committee which will delay a crucial law and encourage further arrival of capital,” Jaitley told Congress member Deepender Hooda who then supported the Bill.

The Bill which Speaker Sumitra Mahajan ruled to be a Money Bill, offers a one-time compliance window to holders of undisclosed assets abroad to declare assets and legalise them within the window by paying 30% tax on asset value and 30 pc penalty.

After the shutter closes, they will be charged 30% tax and 90% penalty and can face jail.