‘Watchman’ Govt keeping close lookout for overseas black money entering India
Since most people with black money stashed overseas follow traditional channels of gold and diamond shipments,
In the annual budget this year, Jaitley had proposed to bring customs offences such as false declaration and false documents under the money-laundering act.
Revenue agencies have already detected a rise in trade-based laundering with multiple modus operandi -- such as the export and import of low-value goods that are declared high-value items -- being employed to bring funds into the country.
According to the financial daily, there is a sudden jump in export turnover or increase in import volumes could trigger an alarm, which authorities have now greater powers to investigate and prosecute.
In a bid to speed up the process, Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 has been passed last month. The law requires residents to disclose foreign income and assets from the assessment year beginning April 1, 2016, and prescribes stiff monetary penalty and imprisonment up to 10 years for failure to do so.