Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 13:40 IST

Slew of Measures Proposed to Deter Generation and Use of Unaccounted Money

Tax Collection at Source on Cash Purchase of Bullion/Jewellery Above Rs. 2 Lakh

Tax Collection at Source on Trading in Coal, Lignite and Iron Ore

Unexplained Money to be Taxed at 30 Per Cent

To deter the generation and use of unaccounted money, a series of measures have been proposed by the Union Finance Minister Shri Pranab Mukherjee in the General Budget 2012-13 presented by him in the LokSabha here today. The measures include:

·         Introduction of compulsory reporting requirement in case of assets held abroad.

·         Allowing for reopening of assessment upto 16 years in relation to assets held abroad.

·         Tax collection at source on purchase, in cash, of bullion or jewellery in excess of Rs. 2 lakh.

·         Tax deduction at source on transfer of immovable property (other than agricultural land) above a specified threshold.

·         Tax collection at source on trading in coal, lignite and iron ore.

·         Increasing the onus of proof on closely held companies for funds received from shareholders as well as taxing share premium in excess of fair market value.

·         Taxation of unexplained money, credits, investments, expenditures etc., at the highest rate of 30 per cent irrespective of the slab of income.

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DSM/AG/DB/17

Tax collection at source on cash bullion purchases and mineral trading proposed to deter unaccounted money. Proposals introduce compulsory reporting for assets held abroad, permit extended reopening of assessments for such assets, expand tax collection at source on high value cash purchases of bullion and on mineral trading, impose withholding on specified immovable property transfers, increase scrutiny of funds received by closely held companies and tax unexplained money, credits, investments and expenditures at a flat highest rate of 30 per cent.