Press Information Bureau

Government of India

Ministry of Finance

27-March-2012 18:21 IST

The Income Tax Department takes several punitive and deterrent steps to unearth unaccounted money and curb tax evasion.  These include scrutiny of tax returns; surveys, search and seizure actions; imposition of penalty and launching of prosecution in appropriate cases.  Information technology is used in a systematic way for collection and collation of information to take anti-evasion action against tax evaders.

The Government has also framed a comprehensive five-pronged strategy in order to bring back the country’s money illegally stashed abroad.  The strategy comprises of:

(i)     Joining the global crusade against ‘black money’;

(ii)   Creating an appropriate legislative framework;

(iii) Setting up institutions for dealing with Illicit Funds;

(iv) Developing systems for implementation; and

(v)   Imparting skills to the manpower for effective action.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya  Sabha today.

DSM/SS/SL

Combating black money: multi-pronged strategy to repatriate illicit funds and strengthen anti-evasion measures using legislation. The Income Tax Department uses scrutiny of returns, surveys, search and seizure, penalties and prosecution, supported by information technology, to detect unaccounted money and curb tax evasion. The Government's strategy to retrieve funds held abroad is multi pronged: international cooperation, legislative reform, dedicated institutions for illicit funds, implementation systems, and manpower training to enforce repatriation and anti evasion measures.