The Cabinet on Tuesday approved a landmark Bill to squarely deal with unaccounted money stashed away by Indians in banks abroad.
The Black Money Bill will be introduced in the current session of Parliament, Finance Minister Arun Jaitley said in the Lok Sabha during his first stage reply on the general Budget.
The Bill will seek to amend the anti-money laundering law to enable attachment and confiscation of equivalent assets in India, in cases where the ones located abroad cannot be forfeited.
The offence of concealment of income or evasion of tax in relation to a foreign asset will be made a predicate offence under the Prevention of Money Laundering law. Enforcement agencies can then attach and confiscate unaccounted assets and launch prosecution against persons indulging in money laundering. Concealment of income and assets and evasion of tax on foreign assets will be prosecutable with punishment of rigorous imprisonment up to ten years, according to Jaitley.
This offence will be made non-compoundable and penalty for such concealment of income and assets at 300 per cent tax would be levied, Jaitley said. The offenders will not be permitted to approach the Settlement Commission, he said.
The foreign exchange management Act (FEMA) will be amended to the effect that if any foreign exchange, foreign security or immovable property situated outside India is held in contravention of this law, action may be taken for seizure and eventual confiscation of assets of equivalent value situated in India. Such contraventions will be liable for levy of penalty and prosecution with imprisonment up to five years.