Govt tracks down 628 Indians with HSBC foreign accounts

Reaffirming its focus on bringing back the black money in the country, the Modi government has received information about 628 Indians who have an HSBC foreign bank account from the French authorities. Of the 628 accounts, 200 account holders are non-traceable or are non-residents.

“For the remaining 428 actionable cases, the net amount of peak balance was about Rs 4,500 crore,” said the Ministry of Finance in a statement.

It added, “The Government of India has taken expeditious action in these cases as per law. Up to December 31, 2014, assessments were completed in 128 cases, involving more than 350 assessments. In the remaining cases, assessment proceedings are at advance stage. Undisclosed income of about Rs 3,150 crore was brought to tax on account of deposits made in unreported foreign bank accounts. ”

The government has also initiated concealment penalty proceedings u/s 271(1)(c) of the Income Tax Act 1961 in the cases, in which assessments have been completed. “About 60 prosecutions have so far been launched for wilful attempt to evade taxes and failure to furnish accounts and documents among others. Show Cause Notices before launching prosecutions have been issued in a large number of other cases wherein further action is underway.”

The finance ministry noted that the Income Tax department is in constant touch with the whistle blower, who is responsible for revealing the names of persons holding undisclosed bank accounts in HSBC, Switzerland. “Useful contacts have been established with foreign governments who might have some further information in this regard. Based upon credible information of undisclosed foreign bank accounts, fresh references for obtaining further information in more than 600 cases have been made to foreign jurisdictions, under available treaties/agreements. The same are being pursued,” the ministry stated