The white paper on black money suggests fast track courts to expeditiously deal with financial offences and deterent punishment for offenders. It also suggests four-pronged strategy to curb generation of black money. These include more incentives for voluntary compliance of tax laws, reforms in vulnerable sectors of economy and creation of credible deterrence.

Finance Minister Pranab Mukherjee tabled White Paper in the Lok Sabha yesterday. The document mentioned that reform of financial and real estate sectors would help in reducing generation of black money in long term basis. The paper made a strong case for setting up Lokpal and Lokayuktas to deal with the menace. It also suggested tax incentives for encouraging use of debit and credit cards as these leave audit trails.

It suggested that government should develop a nationwide data base, introduce TDS on sale of property and set up electronic payment system to check the black money in the real estate sector which accounts for 11 percent of GDP.

The Finance Minister categorically informed the House that there was no exact estimation of the black money generated in the country but refuted the reports that Indians held the largest deposits in Swiss banks by providing data.

Meanwhile, the BJP has termed the White Paper as a disappointing document, which has failed to answer many questions raised on this issue. Briefing reporters in New Delhi, senior party leader Jaswant Singh said that the document does not explicitly state the quantum of black money stashed in foreign banks.