Indian Government And Bringing Back Black Money
Black Money :
What is black money? This refers to money obtained through illicit way and mainly to evade income and other taxes.Illegal ly earned money to avoid taxes is generally transferred illegally abroad in tax havens like Cayman Islands and Mauritius. Real estates,gold, manufacturing are some major grounds for black money transaction.Maximum of it is believed to be in real estate.
Why In Swiss Bank ?
One opens an account in Swiss bank for secrecy.No third party is allowed to know the account information except the account holder and the banker.There is one case for which one’s account can be disclosed.If an account has been running for criminal activities,this can be
This is the most secure and safest place to keep a fund even in the event of a bank failure.
Providing guidance on stocks, bonds, mutual funds and other investments is another important factor to choose this bank.
An Agreement Among Countries Including Switzerland :-
Swiss banking secrecy has been running in force since before the World War II to provide protection of properties to the victims of Nazi persecution . But now Swtzerland has been facing intense global pressure since 2008 due to fiscal crisis in global market. Cooperation to overseas authorities for sharing account information in Swiss bank is what the countries have been looking for.Finally the Multilateral Convention on Mutual Administrative Assistance in Tax Matters has been signed by Switzerland . 58 countries have signed in an agreement to cope with the issues of tax evasion and illegal fund store by mutually transfer of information relating to these.The most important is the agreement of Swiss authority.
Ravi Sankar Prasad Announces Formation Of SIT
White Paper By Former Finance Minister Reveals
Modi Government And SIT
First Decision of Modi Government :-
The government ,headed by Narendra Damodardas Modi, has cleared the priorities of governmental works and confirmed that priorities will be to accelerate growth, control inflation and focus on fiscal strengthening.An epoch-making Indian government by Bharatiya Janata Party headed by a genuine leader Narendra Damodardas Modi has decided to form a Special Investigating Team (SIT) to return black money .A fter the Cabinet meeting law and telecom minister Ravi Shankar Prasad addressed a media conference informing the formation of SIT .
SIT Formation :
retired Supreme Court judge MB Shah will act as the head of this SIT. Secretary revenue, deputy governor of the Reserve Bank of India, director of the Intelligence Bureau, director of the Enforcement Directorate, director of the Central Bureau of Investigation (CBI), chairman of the Central Board of Direct Taxes and director of the Research and Analysis Wing (RAW) are included as members of this team.Top level financial, revenue and economic management officials of the country are among the members of the SIT.
Bharatiya Janata Party’s Estimate :
Bharatiya Janata Party as the opposition party in 2011 ,showed an estimate of black money (economy) between $500 billion to $1.4 trillion.Then they continually fought to return this huge amount of money to make Indian economy stronger.There is no official figure about the amount of black money.But various sources gives an approximate estimate upto $1.4 trillion. Global Financial Integrity(GFI) has rung the bell of illegal money outflow from India to the quantum of $462 billion.
Pranab Mukherjee as the Finance Minister published white paper to counterattack the opposition for black money menace.He proposed promotion of banking channels for transaction and punishing financial offenders by fast track courts expeditiously.
Indian Money In Swiss Bank
Why Has Modi Government Taken This Decision?
Narendra Modi as a prime ministerial candidate,was giving speeches everywhere in India in support of some major relevant and contemporary issues like uprooting corruption from government and bringing back black money from foreign lands which have been supposed to be the tax haven for depositors .Thus the popularity of Modi has been increased due to his clear-cut words. He shouted against the black money .He demanded the money to bring back to India.He promised to bring back black money after coming in power.Now he is in power.People of India have chosen him.So he has decided to keep his oath.In the leadership of Narendra Damodar Das Modi ,the first cabinet meeting publishes the first decision to fulfill the words of Bharatiya Janata Party.
India To Get Swiss Bank Detail
India's efforts to bring back black money stashed abroad Sunday got a major boost with Switzerland that has made a list of Indians suspected to have un-taxed money in Swiss banks. Details would be given to Indian government. Swiss authorities are scanning the names of these Indian individuals during an ongoing exercise.This is to identify real beneficiary owners of funds that have been kept in various banks operating in Switzerland.Thus Swiss government is preparing the list of suspected Indians with black money kept in Swiss banks.Thus the SIT(Special Investigation Team) formed just after formation of the Bharatiya Janata Party led National Democratic Alliance(NDA) government ,is ready to take next step .