There is unlikely to be any kind of amnesty scheme for undisclosed income stashed abroad, according to sources in the know of the proceedings of the multi-agency committee on black money that met on Friday. The committee is unlikely to suggest any offshore or Voluntary Disclosure of Income Scheme.
The meeting was also of the view that there was no need for a new law to tackle the menace of black-money. Sources said that existing laws were adequate to deal with this issue.
The sources said the Income-Tax Department suggested that cases older than six years should be reopened in the matter of undisclosed income.
The Income-Tax Act, 1961 provides for reopening income-tax returns only up to the previous six years. “Now, if we need to go beyond six years, we will have to amend the existing Act as well as the Direct Taxes Code,” the sources said.
The Black Money Committee was of the view that the real estate sector needed to be regulated better.
Interestingly, the committee sent reminders to various industry chambers to give suggestions to check black money, but none had reverted.
The Law Ministry did not favour capital punishment for economic offences. The Ministry felt there was enough punishment under existing laws for such offences, official sources said.
The committee, headed by the Chairman, Central Board of Direct Taxes, is expected to finalise its report by November. This committee consists of the Director of the Enforcement Directorate, the Director-General of the Directorate of Revenue Intelligence, besides others, as members.