Black money hoarders may have a tougher time if they fall into the hands of the income tax (I-T) department. According to a new proposal, their assessment for the past 16 years could be examined as against the present practice of six years.
This is one of the crucial proposals to be taken up for clearance during the upcoming union budget. The proposal is aimed at curtailing black money hoarding and its increased detection.
If cleared, section 158B of the Income Tax Act would get amended to increase the quantum of 'block period' for the purpose of investigation. The section defines block period as the period comprising assessment years preceding the year when search was conducted.
"Six years' records are not enough to detect the entire web of black money in cases involving a huge amount of money," said a senior I-T official. "Records of past 16 years would be scrutinised especially when there are assets in foreign countries."
Officials said that the proposal was made considering the big cry on the issue of black money and the list of a large number of Indians holding black money abroad submitted last year by some foreign nations.