Steps Taken To Control Black Money: Will It Work?

BENGALURU: Undisclosed Foreign Income or Assets generally known as Black Money has become a real headache for the ministry to control. Hence the Union Cabinet has planned to introduce the Black money Bill to Parliament, reports Rediff.com.

Prime Minister Narendra Modi has focused a lot on concealing the trend of Black Money in his campaigns and now with the introduction of the bill in parliament, it is clearly visible that government is quiet serious in its mission. The Former law will deal black money abroad and the current law will attempt to control it domestically.

The Bill cleared by the Cabinet will have  one month time or opportunity to disclose hidden money and assets. If the black-money holders disclose it on their own, they can escape the punishment with tax and penalties. If not, they have to undergo a severe punishment of 10 years of rigorous imprisonment. They can’t resolve the issues with the Taxman; moreover their assets will be seized by the enforcement agencies. Even the file returns paid with inadequate information may undergo a punishment of seven years.

But the government is doubtful about the success of this scheme, which seems to be more like creating a moral hazard.

The very basic question that arises in this situation is, whether punishing or fining the defaulters will curb the black money growth. Even, earlier undisclosed money was enough for imprisonment of 7 years but people somehow find one way or the other to slip through their money. It is high time that this matter should be dealt with iron hands, instead of making rules; steps should be taken to bring transparency in the sectors and also shut down the routes for the transfer of Black Money across borders.

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