Corporate style of fighting black money

In the maiden budget of Finance Minister Arun Jaitley, the announcements made by him included abolished wealth tax; replacing it with an additional 2 per cent surcharge on super rich individuals, 5 per cent reduction in corporate tax over next 4 years, while increasing service tax resulting in variety of services with higher cost.

A new law was announced by Arun Jaitley to tackle black money with tough measures. The government today, to check black money menace, announced 10-year imprisonment along with other tough measures including dis-incentivizing of cash dealings in real estate and other transactions for hiding foreign assets.

Concealment of revenue, assets and tax evasion in relation to foreign assets under the proposed law will lead to rigorous imprisonment of up to 10 years.

The tax rate for the corporate sector was cut by 5 percentage points over the next four years to 25% will be adjunct by phased elimination of exemptions. Following Jaitley’s announcement, the 30-scrip Bombay Stock Exchange Sensex shot up by 250 points.

Jaitley’s plan to introduce a new, comprehensive Benami Transactions (Prohibition) Bill in this session itself was the highlight of the Budget that probably was influenced by public pressure and the BJP’s own political narrative ahead of 2014 Lok Sabha.

Under this law, tough measures proposed were jail term of 10 years for concealment of income, assets and tax evasion in relation to foreign assets along with a penalty at the rate of 300% of tax. These offences were made non-compoundable by Jaitley so that offenders will not being permitted to approach the Settlement Commission.