Black money white paper focus on real estate, gold

New Delhi: Under fire from all quarters for its inability to tackle the problem of black money, the government plans to focus on the real estate and gold and jewellery sectors to stanch the movement of unaccounted funds.

The proposed white paper on black money, to be tabled in Parliament’s current session, is likely to propose a debate on “offshore voluntary compliance” for tax evaders with large sums stashed abroad, officials involved in the exercise told The Indian Express.

“The paper will focus on bullion, gold jewellery and the real estate sector. It suggests that there should be more transparency in land dealings, and registration of land should be regularised,” an official said.

According to the investigation directorate of the income-tax department, in 2009-10, the real estate and gold jewellery and bullion sectors made up — along with the manufacturing sector — the largest chunk of unaccounted money flows.

Officials said that although offshore compliance has been debated in the past and has been criticised by many, such schemes exist in several developed countries, including the US and UK. As per the scheme, tax evaders pay taxes, interest and penalty (both at a lower rate), their identity is kept secret, and the sources of their income are not asked.

Last year, amid anti-corruption movements by Anna Hazare and yoga guru Ramdev, senior BJP leader L K Advani had demanded a white paper on black money from the government. Earlier in the current session, Finance Minister Pranab Mukherjee announced that the white paper would be tabled by the end of the session.


Source:www.financialexpress.com