Shome for crackdown on black money

As a part of the structural reforms that would widen India's tax base, the government on Friday said that there is an urgent need of large tax units (LTU) like in the US. HT reports.

As a part of the structural reforms that would widen India's tax base, the government on Friday said that there is an urgent need of large tax units (LTU) like in the US.

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"We should compulsorily have LTUs and the onus lies on large business houses for this initiative," said Parthasarathi Shome, chairman, committee on General Anti-Avoidance Rules (GAAR).

Shome said considering that nearly 50% of the nation's economy is 'black or underground economy', drastic steps are essential in the tax administration.

"There is a large black economy in India, like while buying any property, a buyer is compelled to pay a large part in cash to a property dealer, which goes unaccounted ," said Shome. "The major challenge before us is to move towards a better tax policy structure and tax administration."