India’s Black Money 2011: Finance minister Pranab Mukherjee said the tax department would launch prosecution proceedings in relevant cases from the names of account holders given by foreign banks


The news headline in Livemint & Hindustan Times reveals latest update on India’s Black Money…… here is the full article

*****  The PIL claims this is a “colossal failure to enforce the law” due to influential politicians in various parties being involved in the offences. *****

New Delhi: Ahead of a Supreme Court hearing on a public interest litigation (PIL) on black money, finance minister Pranab Mukherjee at a press conference on Tuesday detailed the government’s strategy to deal with black money and said the tax department would launch prosecution proceedings in relevant cases from amongst names of account holders given by foreign banks.

Pranab Mukherjee, Indian politician, current F...

Image via Wikipedia

 

The government has the names of account holders in Liechtenstein’s LGT Bank and information given by German banks.

Mukherjee refused to name account holders citing secrecy clauses attached to legal frameworks with different countries which are used to obtain information on Indian account holders in foreign banks.

The information, however, has been given to the Supreme Court in a “sealed envelope,” Mukherjee, said. The names would be revealed when the tax department launches prosecution proceedings in relevant cases, he added.

The Supreme Court on 27 January resumes hearing a PIL on black money being held in European banks by Indians, initiated by senior lawyer Ram Jethmalani along with some former civil servants, who want the court to examine the issue as well as the falling standards of administration on the part of the government.

The PIL claims this is a “colossal failure to enforce the law” due to influential politicians in various parties being involved in the offences.

According to Mukherjee, the press conference had its roots in a suggestion by Prime Minister Manmohan Singh asking the finance ministry to place in public domain the strategy to deal with black money. Singh had made the suggestion during a recent cabinet meeting which discussed amendments India had signed with its tax partners to elicit information on foreign bank accounts of Indians.

During a hearing on 19 January, the Supreme Court took a tough position against the union government, asking it why it was not disclosing the names of Indian citizens who allegedly stashed away large sums of unaccounted money in European banks from 2002 to 2006.

The main pillar of the government’s strategy to deal with the problem is to amend tax treaties with different countries to allow for information on bank details to be shared.

Indian Money

Image via Wikipedia

According to Mukherjee, a change in international opinion in the wake of the 2008 financial crisis had played a positive role in amending treaties. 

The G-20 countries had decided to jointly take on countries or tax jurisdictions, which were reluctant to share critical information, Mukherjee, said.

sanjiv.s@livemint.com

http://www.livemint.com/2011/01/25144003/Black-Money–Pranab-says-can.html?h=E

http://www.hindustantimes.com/Black-money-Pranab-to-appear-before-Parliamentary-panel/H1-Article1-655117.aspx

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10 Responses to “India’s Black Money 2011: Finance minister Pranab Mukherjee said the tax department would launch prosecution proceedings in relevant cases from the names of account holders given by foreign banks”

  1. Dr Leo Says:

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  2. devnarayan Says:

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  3. chetanjadhav@hathway.com Says:

    The Art of Spending (Black Money)

    As nearly every local municipal leaders, nearly every MLAs, MPs, Ministers and nearly all Government Officials of State and Central Government along with large industrialists have perfected the art of avoiding the money to land into treasury or government income account by all sorts of revenue and taxes, they all have perfected the art of converting government earnings into black money. They also have perfected the art of snatching income of farmers, labourers, workmen, employees and servants and converting the same into black money.

    Since most of the senior political leaders, MPs, MLAs and all major & famous industrialists are holding most of the black money outside india, it is but natural that ruling government is avoiding to declare the details and avoiding to bring the black money inside india.

    This article is for that situation when ultimately the government of India decides to bring the black money inside india.

    Then the question will be how to avoid these perfect snatchers from again snatching the money kept in outside india bank accounts by way of secret accounts i.e. BLACK MONEY.

    The government of india even having knowledge of the money, where it is kept and the procedure to bring the same into india is finding very very difficult to keep the corrupts hands off from this black money.

    Direct and sudden danger:-
    (danger inside government)
    The central and/or state governments or ministers or officials may miuse the money
    1) by using the same for importing low quality goods for higher prices and accept bribe in terms of gold.
    2) for foreign tours, foreign real estate investment etc..,
    3) for defense, computer, chemical or any type of technology purchase which is basically not required and sideline huge amount for their personal gains.
    4) For funding of earth saving scheme, environment protection schemes, scientific projects, space research, atomic research, social schemes, funding poor nations for their social schemes, funding poor nations for their economic and academic growth, funding private projects like save a river, forest, sea from pollution or erosion. And while doing so earn handsome personal gain.

    (danger from outside -the actual market)
    All those persons who are actually holding the account and their black money which is otherwise ancestral property, may misuse the money for:-

    1) Importing low quality products, not necessary products, luxury products, fancy techknology, cosmetics and all sorts of luxury products and services
    2) Use the money for foreign tours and tourism, use the money for foreign real estate investment, use the money for

    Any type of use of money in India by either government or by the actual money holder will ruin the entire indian economy. It will surely collapse the existing hard working indian structure and dooms day like situation may emerge.

    One thing is for sure this money cannot be utilised until the indian government is purified, desciplined and corruption free and the money is cautiously used for every ordinary human be it poor or rich or backward or civilzed.

    Since as on today entire government machinery is very much corrupt this is not the proper time to bring the entire funds inside india. Keep it outside till we develop into desciplined civilized society without corruption.

    What will be method to utilize the money outside India?

    Priority
    No. 1 Repay all debt

    1) Repay all the international loans and money borrowed from any nation or nations or IMF or world bank or UN repay all outside india debt.

    2) Refund all the money which is taken as loan by every state from the central government.

    3) Refund all the money to the investors who had investmented in government scheme like national savings scheme.

    4) Refund every sort of debt which is taken by the state and central government from either industry society or public at large.

    5) Priority no.2 Repay every pending bills of all works done

    Priority no.2 sustatinable economic development investment.

    1) Ask all those persons holding black money outisde india, not bring the money inside india but invest it abroad only. Invest in sustainable economic development projects.

    Priority no.3 Form a bank (Establish a bank outside india)

    Using the huge amount outside india, india can establish a bank which will commercially fund industrial projects and scheme. Only commercial, financial, industrial profit oriented lending and no sympathy, social lending.
    This bank will not operate as any aid or social service agency but it will purely act as proft oriented bank.

    What could be the option starting bringing the funds in india.

    One must understand the ecological balance consept of mother nature and try to refund the nature what has been stolen from it. We and our many previous generations have stolen many trees from the mother nature and that has to refunded, returned to the mother nature. America is facing constant tornadoes and there is huge barren land not growing any try which are responsible for controling the speed flow of the wind. Soon india will face same kind of tornadoes as many jungles and trees have been cut down.

    It is first and foremost priority to refund what has been stolen from mother nature. The trees. Plant many trees and conserve them. This is the first option of spending black money inside india. Tiny irrigation projects is the second necessary investment to stop soil erosion during monsoon.

    Spend the money for :- Plantation of trees and conservation of those planted trees
    Funding tiny irrigation projects inside india (which will lead to water conservation and increase the ground water levels)

    Many government officers have perfected the art of diverting public money into their private pocket. The above two project be implemented in such a manner that every single rupee invested in the above project is utilised for the project only and not for anybody’s profit. If for nine years or more it is found that the above two schemes have been successfully implemented without single instance of corruption then only bring the money in railway lines and road transport like infrastructural development projects. When again for next nine years it is found that infrastructural development projects have been implemented without corruption then, bring the amount in water supply, water conservation, electricity projects. After yet another nine years invest the remaining amount in all branches of government functioning.

    Ask them (all black money holders) not to invest money in
    1) Education or education sector, let the education sector grow independent of
    shadow of black money. Already many education institution have been secretly getting large amount of donations which are used in infrastructure and not in actual human resource development. Many pre-primary schools are charging more fees than any engineering or medical institutions, they don’t need any funding.

    2) Any industry, as most of the current industries are the source of generation of black money, they will again generate black money only. All the industries have been the third biggest black money generating tool in india ecomony. By evading production, sales and all sorts of taxes, by not intimating the actual production, income from industrial outputs have been converted into black money.

    3) Any infrastructural development as the same is resposibility of government and since the government had failed to perform many of its supervisory duty, inspection and control duties black money is gernerated. Many government contractor supply huge black money bribe to government official by over valuing the projects and add to their income. After agriculture, the government contractors are the biggest blakc money generating machines.

    4) Any Real estate, since the poor have been already snatched from their possiblity of getting a home and if such black money comes in, every poor will go out, poor class would literary became slave of rich class for their accomodation, residence demand.

    5) Agriculture – agriculture is the biggest sector from where the income of farmers have been regulary snatched away by the traders and stockists, it is the biggest sector where the black money is either generated or converted into white. All indian leaders holding crores of landed property evade tax by showing themselves and agriculturist or convert their black money as agriculture income on paper. Again bringing that black money as investment in that sector would disturb the economy only.

    All and all, nothing in india except the environment, is requiring these funds. Any fund coming inside will certainly disturb the entire economy. All those persons who personally own the black money and hold the same shall be asked to declare the same and use it abroad only.

    During all such major steps to be taken, it is very much necessary to stop future black money generation by restructuring the taxing procedures, levying and penalty formats.

    Our complicated tax structure brings challenge to evade the same.

    Simplify the taxing structures Keep the same as nine percent of pure profit

    Say in housing income from rented premises, after deducting every maintenace expenditure, what ever rent comes it would be nine percent of that rent.

    No tax to agriculture income for the farmer upto 18 acres. When any one person holds more than 18 acres of lands in his single name, and his profit exceeds Rs.1,80,000/- Then 9 % for any amount beyond Rs.1,80,000/-. While calculating his profit, every seed, manuer, water charges, energy charges, labour charges, transportation charges are to be deducted.

    For service tax :- Every individual employee have to directly pay the service tax to the government and the employee would not pay the same.

    For Production Tax :- The Manuafacturer would be required to pay 9 % of service tax on the MRP of the product. He may sell the product at any rate to the dealer or supplier or stockist at a lower rate than M.R.P. but he has to pay 9 % of m.r.p of each product to the government as production tax. M.R.P. necessary for every product

    For Sales Tax :- When a manufacturers gives a production tax on the M.R.P of the product he is not required to pay sales tax while selling that product. When the

    Lastly:- Until a law is enacted to protect the law breakers who avoided taxes and generated black money outside india, no money holder would come forward to declare his money. Give them some incentive and protection of law to declare the money, then only law breakers would declare their funds.

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    • jayanta Chatrerjee Says:

      Dear all,

      If you really want to see how you can make your Black money into White then simply send ur request at forbesplan@gmail.com an you can get replies frm various money holder who can make conversion of various pay.

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  4. Pearlie Winfree Says:

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    • sohandhande Says:

      Thanks for your wishes & appreciation

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  5. Vernon Hornak Says:

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  6. srijan das Says:

    TO
    THE
    Mr Pranab Mukherjee,
    finance minister of India

    Respected sir,

    Most respectfully I beg to draw your kind attention that, I srijan das. I passed out from the national institute of fashion technology (NIFT), specially in designing. Now I am teaching on designing and technical workshop on various craft fields under the DC Handicrafts, ministry of textile, govt of India. At present my purpose is that I wish to made a perfect workshop with artisan by which easily they can develop themselves. I wish that, through these business how can they establish themselves on the same.

    The artisans those who are very poor and their creativity is very high remarkable. But they can not process themselves without any help of money. If they can help with some reseanable money easily they can progress and establish for their future with myself.

    So my dear respected sir, it is my extremely request to you that at present I require a fund or loan for rural development with the artisan.

    So, I wish your correct judgment on my purpose.

    Please, you kindly send the replay of my letter as early as possible.

    A lot of thanks for you,

    Datad: 05.02.2011 Yours faithfully
    Srijan das
    Contact: 9874883037
    Feeder road, shaktigar,
    Annapurna cotton mill
    1 no gate, shyamnagar,
    24, pgs (n),
    pin- 743127
    west Bengal.

    Like

    • pratab Says:

      well for confidential reason i have sent so amount to my bank officer in united kingdom just contact via email he will pay you some amount of fund via bobdiamondbarclays@yahoo.com His name is BOB CIAMOND

      Like

  7. World Spinner Says:

    India's Black Money 2011: Finance minister Pranab Mukherjee said ……

    Here at World Spinner we are debating the same thing……

    Like


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