Government has detected undisclosed income amounting to Rs20,589.75 crore through searches and surveys by the Income Tax Department during 2011-12.
Minister of State for Finance S S Palanimanickam in a written reply to the Rajya Sabha on Tuesday said, “in the searches conducted by Income Tax Department during FYs 2009-10, 2010-11 and 2011-12, undisclosed income of about Rs8,101.35 crore, Rs10,649.16 crore and Rs14,017 crore, respectively were admitted by the persons searched.”
In the searches, undisclosed assets of about Rs963.5 crore, Rs774.98 crore and Rs905.61 crore, respectively, were seized during these financial years respectively, he added.
Further, in the surveys conducted by Income Tax Department during 2009-10, 2010-11 and 2011-12, undisclosed income of about Rs4,857.10 crore, Rs5,894.44 crore and Rs6,572.75 crore respectively was detected, the minister said.
Palanimanickam said drive against tax evasion is an ongoing process and appropriate action under Direct Taxes law including levy of penalty and launching of prosecution are taken whenever cases of tax evasion are detected.
“The Government has taken various steps under a multi-pronged strategy which includes creating an appropriate legislative framework, setting up institutions to deal with illicit funds, developing systems for implementation, imparting skills to the manpower for effective action and joining global crusade against black money,” he said.
Through the Finance Act, 2012, legislative actions are taken such as reporting to assets (including bank accounts) held outside the country, reopening of assessments up to 16 years for taxing undisclosed assets (including bank accounts) kept outside the country, strengthening of penal provisions in respect of search cases, expansion of ambit of tax collection at source (TCS) to cover certain more vulnerable items.
Also, India has been renegotiating its Double Taxation Avoidance Agreements (DTAAs) with other countries to bring the Article on Exchange of Information to international standards.
“...Has also been expanding is treaty network by signing new DTAAs with many other countries and by entering into Tax Information Exchange Agreements with many tax jurisdictions in its effort to facilitate the exchange of information and to bring in tax transparency,” he said.
