New law to curb black money

PAN must for sales/purchases worth over ` 1 lakh

New Delhi: To check black money menace, the government has announced 10-year imprisonment for hiding foreign assets, along with a host of other tough measures including dis-incentivising of cash dealings in real estate and other transactions.

Besides framing new legislations, the government will also take steps to incentivise use of credit and debit cards and putting a cap on cash transactions, while quoting PAN will be mandatory for all sale and purchase of over Rs 1 lakh, Finance Minister Arun Jaitley said in his Budget speech.

"To this end, I propose to introduce a Bill in the current Session of Parliament," he said. Under the proposed law, concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with rigorous imprisonment of up to 10 years. Further, the offence will be made non-compoundable and the offenders will not be permitted to approach the Settlement Commission.

As regards curbing domestic black money, a new and more comprehensive Benami Transactions (Prohibition) Bill will be introduced in the current session. "This law will enable confiscation of benami property and provide for prosecution, thus blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate," Jaitley said.

He also proposed to amend the Income-tax Act to prohibit "acceptance or payment" of an advance of Rs 20,000 or more in cash for purchase of immovable property. Among others, non-filing of returns or filing with inadequate disclosure of foreign assets will be liable for prosecution with rigorous punishment of up to 7 years. Income tax assessee will be required to mandatorily specify the date of opening of foreign account while filing return of income.Jaitley said the Foreign Exchange Management Act, 1999 (FEMA) is also being amended.