Amnesty schemes to bring back black money : Assocham
Industry body Assocham (The Associated Chambers of Commerce and Industry of India) suggested the government on Friday to start a six month amnesty scheme to bring back black money which is hidden in the foreign banks abroad. If the HNIs will be granted pardon through this amnesty, then they may bring the black money home which will be beneficial for the country. They also suggested a 40 % tax on all money offered under the amnesty scheme.
This still may lure the wealthy as they will get an opportunity to convert their black money into white. The government may also impose another 10% tax on the total money brought back and then be parked in infrastructure bonds.
Ved Jain, Chairperson of National Council for Direct Taxes mentioned that almost half the funds brought back can be taken away by the government and out of this 10 % can be returned to the declarant at the expiry of the tenure of infrastructure bonds.
Assocham also mentioned that black money stashed abroad is estimated at $2 trillion. The irony is the level of black money estimated is almost the same as India’s gross domestic product.
RK Handoo, who heads Assocham’s legal affairs committee, stated that the amnesty scheme has worked well for several countries in the recent past and it can be hoped that it will work in India too.
Assocham has also pitched for uniform stamp duty of 3 per cent on real estate transactions across the country.
Source- The Hindu Business Line
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