No Estimate Of Black Money In Foreign Accounts In Last 5 Years: Government

Government has said that there is no official estimation of how much of black money is lying in foreign accounts over the last five years, though Rs 2,476 crores have been collected as tax and penalty under the one-time three months compliance window during 2015.

Minister of state for finance Pankaj Chaudhary said in a written reply to a question during Question Hour in Rajya Sabha that as many as 648 disclosures involving undisclosed foreign assets worth Rs 4,164 crore were made in the one-time three months' compliance window closed on September 30, 2015 under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

He further informed that the amount collected by way of tax and penalty in such cases was about Rs 2,476 crore.

"There is no official estimation regarding the amount of black money in foreign accounts during the last five years. However, the government has taken various steps against the black money abroad which have led to positive results," Mr Chaudhary said in the written response.

He was responding to a question on details of black money brought back to India from foreign countries since 2014 till November 30, 2021 (year and country wise).

Bringing back black money stashed abroad was one of the key poll planks of the current government led by BJP, which assumed power in May 2014.

The minister said that undisclosed income of more than Rs 8,466 crore has been brought to tax and penalty of more than Rs 1,294 crore has been levied on account of deposits made in unreported foreign bank accounts in "HSBC cases" so far.

Sustained investigations conducted in the cases revealed by International Consortium of Investigative Journalists (ICIJ) have led to detection of more than Rs 11,010 crore of credits in the undisclosed foreign accounts so far, Chaudhary said.

With relation to a question on action taken against persons and companies whose names were published in Panama Papers till date, he said total undisclosed credits amounting to Rs 20,353 crore have been detected with respect to 930 India linked entities in the Panama and Paradise Paper Leaks.

"Taxes collected so far amount to Rs 153.88 crore in the Panama and Paradise Paper Leaks. Further, in 52 cases of Panama and Paradise Paper Leaks, criminal prosecution complaints have been filed under the black money act. Besides,130 cases proceedings have been initiated under the act," the minister said in the reply.

Mr Chaudhary further elaborated that the government has taken various steps against black money stashed abroad which have led to positive results.

Multi-lateral regime for proactive sharing of financial information, setting up a special investigation team (SIT) on black money in May 2014, enactment of the stringent new law on black money that came to effect from July 2015 are among the measures taken by the government to curb black money, the minister added.

The government has taken pro- active and effective steps whenever any credible information has been received with regard to black money stashed abroad, whether in HSBC cases, ICIJ cases, Paradise Papers or Panama Papers.

These steps include constituting a multi agency group in relevant cases, calling for definitive information from foreign jurisdictions, bringing the black money to tax under relevant law, launching prosecutions against the offenders, he said.