Lok Sabha Question No. 433 (STARRED), answered on 2016-12-16
Subject: Black Money
Ministry: FINANCE
Asked by: ANANT KUMAR DATTATREYA HEGDE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## STARRED QUESTION No.*433 TO BE ANSWERED ON FRIDAY, THE 16 TH  DECEMBER, 2016

AGRAHAYANA 25, 1938 (SAKA)

## BLACK MONEY

## *433.  SHRI ANANTKUMAR HEGDE:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has made any assessment/estimation of the total amount of black money before/after implementation of the demonetisation in the country and if so, the details thereof;
- (b) the number of cases of disclosure of income with various agencies;
- (c) the amount of undeclared income involved and the present status of such cases; and
- (d) the steps taken by the Government for expeditious disposal of said cases ?

ANSWER FINANCE MINISTER (SHRI ARUN JAITLEY)

- (a) to (d): A statement is laid on the table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.*433,  RAISED  BY  SHRI  ANANTKUMAR  HEGDE, HON'BLE  MEMBER  OF PARLIAMENT,  FOR REPLY ON 16 TH  DECEMBER, 2016

There  is  no  official  estimation  of  the  amount  of  black  money  either  before  or  after  the Government's decision of 8 th November 2016 declaring that bank notes of denominations of the existing  series  of  the  value  of  five  hundred  rupees  and  one  thousand  rupees  shall  cease  to  be legal tender with effect from 9 th November 2016.

The  searches  conducted  by  the  Income  Tax  Department  during  the  period  01.04.2014  to 30.11.2016, in 1356 groups of assessees led to admission of undisclosed income of Rs.31,277 crore  apart  from  seizure  of  undisclosed  assets  worth  Rs.2,164  crore.  Besides,  14,044  surveys conducted  during  the  same  period,  resulted  in  detection  of  undisclosed  income  of  Rs.30,492 crore.  Further,  during  the  period  01.04.2014  to  31.10.2016,  the  Income  Tax  Department  filed 1544 prosecution complaints before criminal courts, besides compounding of offences in 2323 cases. 75 persons were convicted by trial courts for offences under direct taxes during the same period.

648 disclosures involving undisclosed foreign assets worth Rs.4164 crore, were made in the onetime three months' compliance window closed on 30 th September 2015, under the Black Money (Undisclosed  Foreign  Income  and  Assets)  and  Imposition  of  Tax  Act,  2015.  The  amount collected by way of tax and penalty in such cases was about Rs.2476 crore. Further, under the Income Declaration Scheme, implemented by the Government during June to September 2016, 71,726 declarants made declarations of undisclosed income of Rs. 67,382 crore.

Whenever  a  case  of  undisclosed  income/asset  is  detected,  the  Income  Tax  Department  takes necessary action under provisions of direct taxes laws which include investigation, assessment of income,  levy  of  tax,  interest  &  penalty  and  filing  of  prosecution  complaints  before  criminal courts, wherever applicable. Other law enforcement agencies such as Enforcement Directorate, Central Bureau of Investigation, etc. also take action under laws administered through them, in relevant cases, depending upon facts of each case. The Government has taken several steps, both by way of policy initiatives as well as through more effective enforcement action on the ground, to more effectively tackle the issue of black money. These steps include putting in place robust legislative  and administrative frame works, systems and processes with due focus on capacity building  and  integration  of  information  and  its  mining  through  increasing  use  of  information technology.

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