Govt: DTC to Bring Back Black Money

With the implementation of the Direct Tax Code (DTC) in April 2012, the Government expects to bring black money back to India. The finance ministry has developed a comprehensive strategy to tackle this problem by outlining the provisions of the DTC which will increase its scope to include individuals’ bank deposits outside India and unreported bank deposits for other than individuals for the purpose of levying wealth tax.
With the introduction of DTC, resident assessees will be under an obligation to disclose the details of their interest and investment in foreign entities.
In order to obtain information on black money concealed abroad, the Income Tax department has widened its scope to collect information on the amount received by Indian citizens in those countries with which India has Double Tax Avoidance Agreements. The ministry has already requested from tax treaty partners to provide information in relation to 175 specific taxpayers.