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The Government takes several deterrent and punitive measures to prevent the generation and flow of black money. These include undertaking search and seizure and surveys, scrutiny of returns, imposition of penalty and launching of prosecution in appropriate cases. In order to unearth black money in the economy, the Government has in the past introduced various voluntary disclosure schemes.
Further in order to deal with the problem of black money, Finance Bill, 2005 has proposed the following measures:-
i) Levy of tax @ 0.1% on withdrawal of cash on a single day of over Rs. 10,000 or more from banks;
ii) Banks would be required to report to the Government all deposits which are exempt from Tax Deduction at Source on interest.
The Direct Taxes Enquiry Committee (Wanchoo Committee) in its Final Report of December, 1971 estimated black income at Rs. 1800 crore for the year 1968-69 which works out to 16.3% of the Gross Domestic Product.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Shri Isam Singh in Rajya Sabha today.
BSC/DN-165/05
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