(a) Whether the parallel economy driven by the menace of black money tends
to derail the economic growth of the country;
(b) if so, the reaction of the Government thereto; and
(c) the measures taken or proposed to be taken by the Government to unearth the black
money and channelize the same for the development of the country?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b): The economic growth of the country is measured by growth of Gross Domestic Product (GDP)
at factor cost at constant prices. The Gross Domestic Product is estimated by using three approaches
namely Production, Income and Expenditure.
The unaccounted money mainly represents clandestine and illegal activities in the economy.
The estimates of national income do not take into account such activities.
(c); The Government takes several punitive and deterrent steps to unearth unaccounted money. These include
scrutiny of returns, surveys, search and seizure action, imposition of penalty and launching of prosecution
in appropriate cases. Among other efforts to unearth black money, Tax Information Network (TIN) has been set
up as depository of important tax related information which can be accessed by the Department. The information
collected from various sources is also collated electronically to create a 360 degrees profile of the high
net-worth assessees so as to detect tax evasion. A Computer Aided investigation Tool (CAIT) has been
developed to scrutinise computerised Books of Accounts. Modern Cyber Forensic Techniques are utilised
for handling of digital evidence seized during Search and Survey operations. Information as regards
suspicious transactions and large cash transactions, as disseminated by the Financial Intelligence
Unit, India (FIU-IND), is also investigated by the Income Tax Department. Appropriate action under
the provisions of Direct Tax Laws is taken in cases where unaccounted income/wealth is detected.