August 11, 2012 1:14 PM

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Govt releases paper on black money

The Centre has released details of its initiatives for unearthing and curbing black money. A finance Ministry release said, as part of its efforts, the government has updated double taxation avoidance agreements with 84 countries and tax information exchange agreement with nine tax havens.The Government has obtained more than 12,500 pieces of information regarding details of assets and payments received by Indian citizens in several countries, which are now under different stages of processing and investigation. Searches have been conducted in a number of cases this year on the basis of information received from foreign countries under the provisions of double taxation avoidance agreements.The authorities have also received 30,765 pieces of domestic information about suspicious transactions by the financial intelligence unit, which are under investigation. The release said the government has detected mispricing worth Rs 67,768 crore in the last financial year and the current financial year. Directorate of international taxation has collected taxes of Rs 48,951 crore from cross border transactions in the last two financial years.Investigation wing of the Central Board of Direct Taxes (CBDT) has detected concealed income of Rs 19,938 crore in the last two financial years. In 219 cases, the department has detected undisclosed income totalling Rs 565 crore and taxes amounting to Rs 181 crore have already been realized so far.As part of amendments made in the Finance Act, 2012 to deal with the menace of black money and to deter the generation and use of unaccounted money, the compulsory reporting of assets held abroad has been introduced.The statement said the Government has also commissioned a study on unaccounted income, which is being conducted by National Council of Applied Economic Research, National Institute of Public Finance and Policy and National Institute of Financial Management, with inputs from various ministries/departments.The study will be completed by the end of this year.

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