Lok Sabha Question No. 1805 (UNSTARRED), answered on 2016-11-25
Subject: Black Money Dominated Businesses
Ministry: FINANCE
Asked by: RAM TAHAL CHOUDHARY, CHANDRAKANT BHAURAO KHAIRE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. †1805

TO BE ANSWERED ON FRIDAY, THE 25 TH  NOVEMBER, 2016

AGRAHAYANA 4, 1938 (SAKA)

## BLACK MONEY DOMINATED BUSINESSES

## †1805 . SHRI RAM TAHAL CHOUDHARY: SHRI CHANDRAKANT KHAIRE:

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

- (a) whether usage of black money is rampant in real estate sector and film industry of the country and if so, the details thereof;
- (b) whether the Government has unearthed black money from the real estate sector and film industry;
- (c) if so, the details of black money unearthed in these sectors during the last three years; and
- (d) the  details  of  steps  taken/being  taken  by  the  Government  to  prevent  usage  of  black money in these sectors and the action taken on the concerned involved therein?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b) : Analysis of seizure of valuables and admission of undisclosed income during searches conducted by Income-tax Department during last three financial years indicates that the persons searched  were  involved  in  multiple  activities  in  varied  sectors  and  it  may  not  be  feasible  to comprehensively  apportion  the  undisclosed  income  detected  amongst  the  specific  sectors. However, the data indicates that the main sectors in which black money is rampant include real estate, finance, trading, manufacturing, educational institutes, and services.

(c):  Specific  and  comprehensive  sector-wise  apportionment  of  undisclosed  income  detected during searches is not feasible. However, the initial outcome of the searches conducted by the Income-tax Department during last 3 financial years is as under:

| F.Y      |   Number of groups searched |   Total assets seized (In Rs. crore) |   Undisclosed income admitted u/s 132(4) of the Income-tax Act, 1961 [in Rs. crore] |
|----------|-----------------------------|--------------------------------------|-------------------------------------------------------------------------------------|
| 2013- 14 |                         569 |                               807.84 |                                                                             10791.6 |
| 2014- 15 |                         545 |                               761.7  |                                                                             10288   |
| 2015- 16 |                         445 |                               712.68 |                                                                             11066.2 |

(d): Action against tax evasion/black money is an on-going process. Such action under direct tax laws includes searches, surveys, enquiries, assessment of income, levy of penalties and filing of prosecution complaints before criminal courts, wherever applicable.

In  recent  times,  the  Government  has  taken  several  measures  to  effectively  tackle  the  issue  of black  money.  Such  measures  include  putting  in  place  robust  legislative  and  administrative frameworks,  systems  and  processes  with  due  focus  on  capacity  building  and  integration  of information  and  its  mining  through  increasing  use  of  information  technology;  prohibition  of acceptance  of  payment/repayment/advance  of  Rs.20,000  or  more  in  cash;  enactment  of  the Benami  Transactions  (Prohibition)  Amendment  Act,  2016  to  amend  the  Benami  Transactions (Prohibition) Act, 1988 with a view to, inter alia, enable confiscation of Benami property and provide  for  prosecution;  initiation  of  the  information  technology  based  'Project  Insight'  for strengthening the non-intrusive information driven approach for improving tax compliance and effective utilization of available information; amendment in rule 114B of the Income Tax Rules (the Rules) making mandatory quoting of PAN for transactions of sale or purchase of goods or services of any nature above Rs. 2 Lakh; constitution of the Special Investigation Team (SIT) on Black  Money  under  Chairmanship  and  ViceChairmanship  of  two  former  Judges  of  Hon'ble Supreme Court, etc.

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