Another black money panel set up

Under attack for inaction over black money allegedly stashed away in accounts in overseas tax havens, the government on Wednesday announced setting up of another panel to suggest ways to trace tax defaulters, reveal their identity to the public and recover taxes.

Under attack for inaction over black money allegedly stashed away in accounts in overseas tax havens, the government on Wednesday announced setting up of another panel to suggest ways to trace tax defaulters, reveal their identity to the public and recover taxes.

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The committee, headed by Director General Income Tax Anita Kapur, will propose a reward scheme for those who supply information about such tax defaulters and results into collection of the outstanding demand.

"Attempts are being made from time to time to recover this outstanding demand by using the asset and bank information available with the Finance Intelligence Unit (FIU) and annual information reports of the income tax department," a finance ministry statement said.

"The list of defaulters is also matched with the asset data available. There is a good possibility to locate some assets to realise this outstanding demand," it said.

There is a demand to put the list of chronic defaulters in the public domain. This will also put the onus on the taxpayers to liquidate their demand, the finance ministry statement said.

The government has already commissioned a joint study by three think-tanks-National Institute of Public Finance and Policy, National Institute of Financial Management and the National Council for Applied Economic Research - to estimate Indian entities' unaccounted wealth both at home and abroad.

Besides, it has set up a committee headed by the Central Board of Direct Taxes chairman to examine ways to strengthen laws to curb the generation of black money, its transfer to overseas locations and its recovery.