More steps on curbing black money on anvil: Jaitley
Finance Minister Arun Jaitley on Monday hinted at coming out with more steps on squeezing black money but assured honest taxpayers that they need not fear the new law to unearth unaccounted wealth stashed abroad.business Updated: May 25, 2015 20:40 IST
Finance Minister Arun Jaitley on Monday hinted at coming out with more steps on squeezing black money but assured honest taxpayers that they need not fear the new law to unearth unaccounted wealth stashed abroad.
He also said that if the tax base and collection rise, then the government's ability to give concessions in terms of rates to honest taxpayers will also go up.
"The parallel economy has to be squeezed...and (it) has to be done in a very fair manner, not in a harsh manner. In doing so, as senior officers you have to maintain the highest standards of integrity," he said addressing a conference of top officials of the Central Board of Direct Taxes (CBDT).
On the new black money law which seeks to bring back the illicit funds stashed abroad, Jaitley said, "No honest taxpayer has anything to fear. It is targeted only against those who have stashed assets abroad."
He said the department will come out with its policy that those who have wealth outside were being given a compliance window on taxation which have been imposed on the assets outside.
"It is only those who have defied the system in the past and those who defy during compliance period also may have something to worry about.
"There are steps which have been announced and some may be announced in future with regard to squeezing the quantum of black money. If the base increases, collection increases and those who have to pay taxation are compelled to pay it. The ability of government to give concession in terms of rates to honest tax payers also increases," Jaitley said.
He also said that improvement in tax collection will increase the ability of the government to step up spending on social and infrastructure projects.
The minister further told the tax officers, "Every well meaning advisor will tell you, tax base has to be expanded. Black money has to be squeezed out and at the same time if you take steps to do that, you have to listen to the taunt of draconian steps which are being taken."
The government, the minister said, has taken a host of measures to curb the menace of black money. These include passage of the black money law by Parliament and introduction of Benami Transactions (Prohibition) bill to deal with the unaccounted domestic wealth.