Cabinet Okays 10-Yr Jail, 300% Fine For Tax Evaders

[donganaaK]

Acting on its promise to prevent black money menace, the Union Cabinet on Tuesday approved a new legislation that would give more powers to the tax department in tracking illicit wealth stashed abroad and provide for strict penal actions for such offence. Under the proposed law, those hiding income and assets, and evading tax in relation to foreign assets are liable to face jail term up to ten years and up to 300 per cent penalty.

The Bill is expected to be introduced in the Lok Sabha this week as the Government wants to start discussions on it before the Budget Session breaks for recess. On Tuesday, Cabinet also approved signing of an agreement with the US on the Foreign Account Tax Compliance Act (Fatca) which will enable India to acquire information on big foreign transactions and indirectly curb black money stashing.