MINISTER OF STATE IN THE MINISTRY OF FINANCE (Snri S.S.PALANIMANICKAM)
(a) There is no official estimate in this regard. However, the Government has
commissioned a study, inter alia, on estimation of unaccounted income and wealth both
inside and outside the country. The study is being conducted by three institutes - National
Institute of Public Finance and Policy (NIPFP), National Council of Applied Economic
Research (NCAER) and National Institute of Financial Management (NIFM) separately. The
study reports are yet to be submitted by these institutes.
(b) Does not arise in view of reply to part (a) above. However, drive against tax evasion
is an ongoing process and appropriate action under Direct Taxes laws including levy of
penalty and launching of prosecution are taken on detection of cases of tax evasion. The
Government has taken various steps under a multi-pronged strategy which includes creating
an appropriate legislative framework; setting up institutions to deal with illicit funds;
developing systems for implementation; imparting skills to the manpower for effective action;
and joining the Global crusade against black money, legislative measures taken through the
Finance Act, 2012 in this regard include introduction of provisions requiring reporting of assets
(including bank accounts) held outside the country; reopening of assessments up-to 16 years for
taxing undisclosed assets (including bank accounts) kept outside the country; strengthening of
penal provisions in respect of search cases; expansion of the ambit of tax collection at source
(TCS) to cover certain more vulnerable items / sectors. India has been renegotiating its Double
Taxation Avoidance Agreements (DTAAs) with other countries to bring the Article on Exchange of
Information to International standards, and has also been expanding its treaty network by signing
new DTAAs with many other countries and by entering into Tax Information Exchange Agreements
(TIEAs) with many tax jurisdictions in its effort to facilitate the exchange of information and
to bring in tax transparency. It has also become a member of the Multilateral Convention on Mutual
Administrative Assistance in Tax Matters in 2012. Various steps have also been taken to improve
intelligence gathering mechanism of the Department. These steps have equipped the Government
better in tackling the menace of tax evasion.
(c) Does not arise in view of reply to part (a) above. However, black money is generated
through various means including tax evasion using transfer pricing.
(d) Does not arise in view of reply to part (c) above. However, Government has taken
various measures to address the issue of tax evasion as illustrated in reply to part (b) above.
(e) As stated in reply to part (a) above, the final reports in respect of the study being
conducted by these institutes are yet to be received in the Ministry.
(f) The study reports are still in the process of fmalisation by the respective institutes.
These are likely to be received in the Ministry by the end of April, 2013, After submission of
the study reports by the three Institutes, the study reports would be examined by the
Government for necessary action.
