The committee set up under the Income Tax department to explore ways to curb the generation of black money appears to be dragging its feet. Four months into its existence and four meetings later,the committee constituted under the chairman,central Board of Direct Taxes (CBDT),is yet to make concrete suggestions towards strengthening laws to curtail black money generation,its illegal transfer abroad and its recovery. The committee met on Friday for the fourth time since its formation on May 28 to discuss the various aspects of black money. It was mandated to examine the existing legal and administrative framework regarding black money and explore the options of declaring ill-gotten wealth as national asset; enact/amend laws to confiscate and recover such assets; and provide for exemplary punishment against its perpetrators. However,in its meeting on Friday,the committee ruled out the need for a new legislation as existing laws are adequate to deal with the menace of black money, an official source said. The committee also winnowed out the possibility of recommending a voluntary disclosure of income scheme (VDIS),the arrangement though which the individuals having unaccounted income could pay tax on the income without disclosing the source of such income. The committee includes a CBDT member,director Enforcement Directorate,DG Directorate of Revenue Intelligence,director general (Currency),joint secretary (foreign taxation),CBDT,joint secretary of law ministry,director of financial intelligence unit,as its members. The government,under fire from both the Opposition and civil society organisations,had set up the committee to look into black money related issues and it was to submit its report within a period of six months. On the debate regarding capital punishment for black money hoarders,the committee,said such a move will take us back in time. The idea was rejected by the ministry of law,which is a part of the committee. However,the committee sought administrative reforms in departments implementing legislation tackling the black money menace,in respect of more manpower,better resources along with better intelligence sharing.
