Panel to suggest framework to seize black money formed: Govt

The government today said a committee has been constituted to suggest a legal framework for confiscating such wealth by declaring it as "national assets".

The government today said a committee has been constituted to suggest a legal framework for confiscating such wealth by declaring it as "national assets".

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"A committee headed by the Chairman of CBDT (Central Board of Direct Taxes) has been constituted to examine ways to strengthen laws to curb generation of black-money in India, its illegal transfer abroad and its recovery," Minister of State for Finance S S Palanimanickam said in a written reply to Lok Sabha.

He said the committee shall examine the existing legal and administrative framework to deal with the issue of generation of black money through illegal means. This would involve the wealth generated illegally as national asset besides enacting or amending laws to confiscate and recover such assets and suggesting punishment against its perpetrators.

"The committee shall consult all stakeholders and submit its report within a period of six months," Palanimanickam said. The government has in recent times been under immense pressure on the issue of black money not only from the Opposition and civil society, but also from the Supreme Court.

Besides setting up specialised panels, the Government is also amending the existing Double Taxation Avoidance Agreements (DTAAs) with different countries and entering into Tax Information Exchange Agreements (TIEA) with tax havens.