Black Money Bill Passed; Modi Govt Warns Those Having Illegal Assets

Stressing that the new black money law was not "an amnesty scheme", Jaitley said it does not provide for waiver of tax. Instead it proposes tax, penalty and also prosecution.

Moreover, he said, "amnesty schemes also have a protection against naming and shaming... your identity will be kept secret. There is no such protection which has been granted."

The compliance window will give an opportunity for payment of tax and penalty, he said, adding "once the compliance window closes, you are going to be taxed very heavily."

Tax and penalty of 120 per cent, which will be imposed after the expiry of 'compliance window', means the "value of assets is gone," the Finance Minister said.

Responding to apprehensions expressed by some members about harassement of innocent persons by taxmen, Jaitley said, it will apply only to resident and will not cover prosessionals and Non-Resident Indians (NRIs) working abroad.

"Are innocents going to be harassed as a result of this? The answer is no," Jaitley said, adding "those who work abroad are not going to be covered. It is those who are resident taxpayers and assesses in India, and who keep unauthorised income outside are going to be liable under this Act."

He underlined that the black money law will deal with foreign assets and not the domestic tax evasion which was being taken care of by the Income Tax Act.

"If it is violation of keeping national assets outside the country...we have made it now a predicate offence, which is liable for an action under Prevention of Money Laundering Act (PMLA) and lead to attachment of equal amounts of (domestic) assets," he said.

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