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MEMBERS’ REFERENCE SERVICE

REFERENCE NOTE . No. 37/RN/Ref./November/2015

For the use of Members of Parliament Not for Publication

BLACK MONEY

------------------------------------------------------------------------------------------------------------------------------------------- The reference material is for personal use of the Members in the discharge of their Parliamentary duties, and is not

for publication. This Service is not to be quoted as the source of the information as it is based on the sources

indicated at the end/in the text. This Service does not accept any responsibility for the accuracy or veracity of the

information or views contained in the note/collection.

BLACK MONEY

Definition

Black money is a term used in common parlance to refer to money that is not fully

legitimate in the hands of the owner. This could be for two possible reasons. The first is that the

money may have been generated through illegitimate activities not permissible under the law,

like crime, drug trade, terrorism, and corruption, all of which are punishable under the legal

framework of the state. The second and perhaps more likely reason is that the wealth may have

been generated and accumulated by failing to pay the dues to the public exchequer in one form

or other. In this case, the activities undertaken by the perpetrator could be legitimate and

otherwise permissible under the law of the land but s/he has failed to report the income so

generated, comply with the tax requirements, or pay the dues to the public exchequer, leading

to the generation of this wealth.

While the source of generation of black money may lie in any sphere of economic activity,

there are certain sectors of the economy or activities, which are more vulnerable to this menace.

These include real estate, the bullion and jewellery market, financial markets, public

procurement, non-profit organizations, external trade, international transactions involving tax

havens, and the informal service sector1.

Impacts of ‘Black Money’

Its major impact is the loss in revenue collection as it loses the tax which would have

come to the Exchequer if such transactions had been done in the open and duly

accounted for.

Black money situation results in an under-estimation of resources available in the

country which can distort major investment targets and objectives of government’s

planning.

In order to avoid detection, these ill-gotten gains are kept either outside the country as

deposits in foreign banks accounts which deprive the country of a part of its wealth

which could have been used for growth or is hoarded within the country and results in

1 India. Ministry of Finance, White 'Paper on Black Money', May 2012, p.11,16.

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immobilization of investible funds, which could have helped in the economic growth of

the country.

Black money provides alternative source of credit at ‘free market’ rate which defeat

Government’s economic policies, particularly related to the credit and investment, and

make them ineffective.

Black money and tax evasion, which go hand in hand, throw a greater burden on the

honest taxpayer and lead to economic inequality and concentration of wealth in the

hands of the unscrupulous few in the country.

Since black money is in a way ‘cheap’ money too, as it has not suffered reduction by way

of taxation, there is a natural tendency among its possessors to use it for lavish

expenditure and conspicuous consumption which, to a large extent, is responsible for the

inflationary pressures, shortages, rise in prices and economically unhealthy

speculation in commodities.

It encourages large–scale smuggling of gold, etc., into the country, causing considerable

strain on balance of payments position.

Black money encourages over-financing of business which adds further to the

inflationary pressures in the country.

Black money and tax evasion divert the energy of taxpayers from productive activities

to the non-productive object of manipulation of accounts and devising all sorts of facades

to escape their legitimate tax liability.

In the process, they also compel the administration to spend a lot of its time and

resources on tackling their devious ways of tax evasion which could have been put to

more purposeful use.

Money parked in banks is used for terrorism or other illegal activities. Such many of the

newly rich, who enjoy material prosperity and social prestige, owe their existence really to

these anti-social activities. This shatters the faith of the common man in the dignity of

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honest labour and virtuous living and has pernicious effect on the general moral fibre

of society.

It is, therefore, no exaggeration to say that black money is like a cancerous growth in the

country’s economy which, if not checked in time, is sure to lead to its ruination2. With the onset

of liberalization and globalization, the phenomenon of black money has matured and graduated

itself into a highly complex problem.

Estimates of Black Money/Black Economy

Black money in India is as much a reality as it is in any other developed or developing

country3. There is no official estimation regarding the amount of Black Money generated in the

country. Various non-governmental organization and economist in the past have indicated

widely varying estimations regarding illicit financial flows out of the country. Such estimations

appeared to be based upon different sets of facts, assumptions, presumptions, etc. leading to

widely varying inferences4.

The last official study was done at the behest of the Ministry of Finance by NIPFP in

1985. NIPF study concluded that total black money income generation of ` 36,784 crore on in

round number ` 37,000 crore out of a total GDP at factor cost of Rs. 1,73,420 crore.

While the NIPFP Report estimates the extent of ‘black’ economy (not counting smuggling

and illegal activities) at about 20% of the GDP for the year 1980-81, Shri Suraj B Gupta, a noted

economist, has pointed out some erroneous assumptions in NIPFP study. He estimated ‘black’

income as 42% of GDP for the year 1980-81 and 51% for the year 1987-88.

Shri Arun Kumar in his book has pointed out certain defects in NIPFP study and Gupta’s

method. He estimated the extent of ‘black’ income to be about 35% for the year 1990-91 & 40%

for the year 1995-96.

Thus, it can be said that though ‘black’ money exists to a substantial extent in our

economy, its quantum cannot be determined exactly5.

2 India. Ministry of Finance, Director Tax Enquiry Committee Final Report December, 1971, pp.5-6

3 Its Raining Black, by Shailendra Kumar, pp. 49-50

4 Rajya Sabha, Unstarred Question No.1006, dated 5.5.2015.

5 India, Ministry of Finance, Committee on Measures to Tackle Black Money in India and Abroad, 2012

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In 2011, the Government had commissioned a study, inter alia, on estimation of

unaccounted income and wealth inside and outside the country which was conducted by

National Institute of Public Finance and Policy (NIPFP), National Council of Applied Economic

Research (NCAER) and National Institute of Financial Management (NIFM). Reports received

from these institutes are under examination of the Government6. Once the Reports are

published there might be additional clarity on the scale of this problem in the country.

Though no official studies have been carried out in recent years on the illicit financial

flows from India, Dev Kar of the Global Financial Integrity Centre for International Policy,

Washington estimates that since independence, a total of US $ 213.2 billion was shifted out of

India between 1948 and 2008, which constituted 16.6% of India’s GDP at the end of 2008. In his

analysis, the researcher on the basis of data, confirmed that economic reforms since 1991 had

led to faster growth, though such rapid economic growth in the post reform period led to more

skewed income distribution. In the post reform period, the paper also indicates that faster

economic growth appears to go hand in hand with larger illicit flows and worsening of income

distribution7.

As regards black money stashed abroad, the White Paper on track Money observed, "It is

however useful to mention here one estimate of the amount of Indian deposits in Swiss banks

(located in Switzerland) which has been made by the Swiss National Bank. Its spokesperson

stated that at the end of 2010, the total liabilities of Swiss Banks towards Indians were 1.945

billion Swiss Francs (about ` 9,295 crore). The Swiss Ministry of External Affairs confirmed

these figures when a reference was made by the Indian Ministry of External Affairs to them".

The White Paper further noted, "The illicit money transferred outside India may come back to

India through various methods such as hawala, mis-pricing, foreign direct investment (FDI)

through beneficial tax jurisdictions, raising of capital by Indian companies through global

depository receipts (GDRs), and investment in Indian stock markets through participatory notes.

It is possible that a large amount of money transferred outside India might actually have

returned through these means"8.

6 Rajya Sabha, Unstarred Question No.1006, dated 5.5.2015.

7 India, Ministry of Finance, Committee on Measures to Tackle Black Money in India and Abroad, 2012

8 Black Money and Tax Evasion in India, by M.M. Sury, pp. 38-39

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Black Money and Tax Heavens

'Black money' and 'tax havens' are historically perceived as Siamese twins. They are the

two sides of the same coin. Since high tax rates were the common feature of tax regimes across

the world. In the past century, it obviously led to poor compliance and large-scale evasion. This

is where some of the small island countries spotted an opportunity to make a kill of foreign funds

by offering low tax rates and attractive bank secrecy laws. When some of early birds were seen

attracting mountains of tainted or tax evaded funds from different parts of the world, a few more

organised economics joined the race to graduate to a more attractive tax haven. And such a

race took the tally of tax havens to as many as 90 in less than a century. In fact, to outsmart and

to lure depositors from other, a few tax havens began to bundle more attractive services such as

no inquiry about the beneficial owners of deposits; no tax information exchange agreements

with any country and minimal capital gains tax rate. Some of the key tax havens popular in India

are Cyprus, Singapore, Switzerland, Cayman Islands, Liechtenstein, Monaco and Andorra9.

Adding to the complexity of this outflow of unaccounted money is that this wealth is not

simply lying in foreign bank accounts to be recovered or brought back to the country. In reality, a

large portion of this money comes back into India by a process known as ‘round tripping’ i.e. the

money that left the country and ended up in a tax haven is invested back into the country as

‘white’ money. But there is no data or analysis on how much of the black money is round tripped

and comes back into the country. In addition to being low or nil tax jurisdictions, tax havens offer

strong secrecy with respect to hiding wealth making them attractive locations for confidentially

routing money through them. This makes the issue of recovering Black Money extremely

difficult10.

Suggestions on Curbing Generation of Black Money

Of commerce, corruption and crime – the three kinds of activities that generate black

money, the first two are of greater immediate concern in India. The generation of black money in

regular economic and commercial activities has two dimensions – generation of black money

within the national economy and its consumption within the country; and generation of black

money within the country and its transfer outside the country. It is to be noted that money illicitly

transferred outside does not stay permanently abroad, as commonly believed, but is also

9 It's Raining Black!, by Shailendra Kumar, pp.3-5.

10 Op.cit. CBGA, 'Issue Related to Black Money' by Pooja Rangaprasad

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brought back into the country in various forms. Black money generated out of corruption –

whether in the public sector emanating from controls, licensing, contract or delivery of goods

and services; or in the private sector originating from project financing, pilferage of public goods

and services, bogus claims of expenses, under-reporting of production and sales, etc. – has to

be dealt with differently.

Some of the recommendations of the earlier committees/groups/studies/experts are as

under11:-

Direct Taxes Enquiry Committee (DTEC) [Chairman: Justice K.N. Wanchoo], 1971: DTEC was

appointed to examine and suggest legal and administrative measures for unearthing black

money and countering evasion and checking avoidance. It comprehensively dealt with the

cause of and methods of tackling tax evasion.

The Committee suggested various measures to fight the evil of tax evasion. Some of

measures suggested were as follows:

1. Reduction in tax rates

2. Minimization of controls and licenses.

3. Regulation of donations to political parties.

4. Creating confidence among small taxpayers.

5. Substitution of sales tax by excise duty.

6. Vigorous prosecution policy.

7. Compulsory maintenance of accounts.

The Report of DTEC was a milestone in the area of income tax rates. The Committee

made a number of far-reaching suggestions for unearthing black money, preventing evasion and

avoidance of taxes, and reducing arrears. One important recommendation of the Committee

related to reduction in the rates of direct taxes which in its view were mainly responsible for tax

evasion because they made tax evasion profitable and attractive. The rates of individual income

tax were quite high till the year 1973-74. However, pursuant to the recommendations of the

11

India, Ministry of Finance, Committee on Measures to Tackle Black Money in India and Abroad, 2012

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DTEC, the Government initiated a series of rate reductions in individual income tax. It is

noteworthy that DTEC had recommended a maximum marginal rate of 75 per cent12.

NIPFP Study Report (1985): The report made recommendations covering four major areas, viz.

(i) changes in economic and related policies designed to reduce black income generation; (ii)

policies designed to promote integrity and improve honesty among at least senior tax officials

and those dealing with controls; (iii) measures designed to bring down the amount of black

wealth currently held; and (iv) policies relating to administration and enforcement of taxes,

prosecution of tax offenders and imposition of penalties for economic crimes.

Among changes in economic policies, the Study recommended reduction in tax rates and

simplification of the tax structure; reduction in the complexity and number of controls through de-

regulation, decontrol and dependence on pricing mechanism; and proper financing of election

expenses. To improve public administration, the Study recommended implementing a system of

rewards for hard-work and honesty and punishment for dishonesty and negligence, along with

better remuneration for public servants. Towards measures to bring down black wealth currently

held, a National Fund for socially relevant projects such as slum-improvement and a voluntary

disclosure scheme with immunity from prosecution were recommended. To improve tax

administration, introduction of modern technology, increasing strength of the tax department and

better training for its officials were recommended. For better enforcement of tax laws and

prosecution of tax offenders, the recommendations made included reduction in number of

scrutinizes and searches; increase in number of surveys; quick disposal of assessments,

imposition of penalties and launching of prosecution in search cases; amendments to Chapter-

XXA to make it more effective in dealing with generation of black money in immovable property

transactions; shifting the initial burden of proof on the tax evader; and setting up special courts

to try tax and other economic offences with special and speedier trials.

Suraj B Gupta ‘Black Income in India’ (1992): In his study published by Sage, Mr Suraj Gupta

criticized the earlier measures undertaken by the government from time to time to unearth black

money, viz. VDI Schemes 1951, 1965, 1975 and 1985; SBB Scheme 1981; and demonetization

of currency in 1946 and 1978; and also touched upon the schemes launched by the government

during 1991-92. His critique of improper implementation of statutory tax provisions; ineffective

12

Black Money and Tax Evasion in India Magnitude, Problem and Policy Measures by M.M. Sury, pp. 152-53

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surveys, search and seizures; imposition of few penalties and rare prosecutions due to legal

interpretations and delays; appear to indicate that dealing with the menace of black money was

more an implementation issue.

Arun Kumar ‘The Black Economy in India’ (1999): In his study published by Penguin as above,

while Mr Arun Kumar did criticize as failures the following measures undertaken from time to

time to tackle black money – (a) voluntary disclosure schemes; (b) demonetization in the year

1978; and (c) lowering of tax rates; he recommended better regulation of real estate and

financial markets, right to information, as well as political and judicial reforms to reduce the need

to generate and curb black wealth.

Vijay Kelkar Task Force (2003): According to the Kelkar Task Force (KTF), the fundamental role

of tax administration is, to render quality taxpayer services to encourage voluntary compliance

of tax laws, and to detect and penalise non-compliance. Recommending introduction of best

international practices in the area of taxpayer services for widening the tax base through

voluntary compliance, most of the measures recommended by KTF are under various stages of

implementation or stand implemented (TABLE-H1). In the area of personal and corporate

taxation, KTF had made a number of recommendations with a view to reduce the tax slabs,

deductions and exemptions. Most of these recommendations have also been either

implemented or are in the process of implementation, primarily through the Direct Taxes Code

Bill 201013.

CBDT Committee, 2012: According to Committee, there are two dimensions of the issue of

black money – first, its generation and, second, its consumption and use, including laundering of

black money back to mainstream economy. Dealing with this menace has to cover both these

aspects. So far as generation of black money from crime or corruption is concerned, its remedy

does not lie merely in legislative or enforcement domains but also in finding much deeper socio-

economic solutions. While there may not be any need to have new law to especially deal with

black money and black economy, various existing laws need to be comprehensively reviewed

by the concerned administrative ministries on a regular basis keeping in view the changing

economic scenario, and provisions dealing with violations need to be strengthened accordingly.

13

India, Ministry of Finance, Committee on Measures to Tackle Black Money in India and Abroad, 2012

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The Committee has identified following strategy to tackle black money:- Preventing

generation of black money, Discouraging use of black money, Effective detection of black

money, Effective investigation & adjudication Other steps14.

Voluntary Disclosure Schemes

Voluntary disclosure scheme have been announced from time to time. These schemes

give amnesty to those who have generated black incomes in the past. The last of these was the

highly publicized voluntary disclosure scheme (VDIS) of 1997. `10,000 crore of taxes were

collected through it.

Amnesty Schemes of the Government of India since Independence

Note: i). (W) Wealth, (I) Income

ii). There were four amnesty schemes in 1991 three for domestic evaders (under Voluntary Deposits (Immunities and

exemptions)), (Gold Bond, Deposits with National Housing Bank and Amended Section 273 A of the Income Tax Act) and

remittances of FOREX and investment in FOREX bond.

iii). Resurgent India Bond in 1998 collected approx. ` 4 billion. It should not listed in the table because it was only partly like an

amnesty scheme.

Measures adopted from time to time, like, bearer bonds and voluntary disclosure

schemes actually aggravate the problem. They allow easy convertibility of accumulated black

funds to white. Thus they further reduce the already low cost of evasion and thereby encourage

the expansion of the black economy. They build up the expectation that these schemes would

be repeated sooner or later so the reason for paying taxes now and complying with the law of

14

India, Ministry of Finance, Committee on Measures to Tackle Black Money in India and Abroad, 2012

Year No. of cases

Income declared

Tax collected

1. Income Tax Investigation Commission 1946-47 .. 48 30

2. VDS May-Oct 1951 20912 70.2 10.89

3. Detected by the Department 1963-64 to 1966-67 .. 81 31

4. VDS I Mar-May 1965 2001 52.18 30.8

5. VDS II Aug. 1965 - Mar. 1966 114226 145 19.45

6. Under Section 271 (4A) of Income Tax Act of 1961

1965-68 .. 22 NA

7. VD of Income and Wealth Act 1976 Oct-1975 (W) 245570 (I) 13422

(W) 746.08 (I) 841.72

(W) 249 (I) 7.7

8. Special Bearer Bond Scheme (1981) 1980 .. 400 160

9. Voluntary Deposits (immunities and exemptions)

1991 NA NA 984

10. Finance Act (1985) 1985-86 1,53,990 2940.37 388.03

11. VDIS 1997 4,70,000 33,000 10,100

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the land is eroded. These schemes may have been considered attractive if they had at least

mopped up a major portion of the black funds and had made an impact on the generation of

black incomes in the future.

Disclosure schemes send the wrong signals to the tax evader and to the honest citizen.

The former is encouraged to indulge in more of illegality (not just tax evasion) while the latter

who loses faith in the system feels it is unfair and tries to gain through other means. Either way,

the system loses and the black economy is encouraged15.

Black Money Chase : Measures taken by the Government

Searches and Surveys: Appropriate action under relevant laws in respect of cases involving

black money stashed abroad is an on-going process. Such action under direct tax laws includes

searches, surveys, enquiries, assessment of income, levy of tax, interest, penalties, etc. and

filing of prosecution complaints in criminal courts, wherever applicable. The tax, interest and

penalties, forming part of the total liability of each assessee, are enforced as per law16.

Statistics on searches and surveys conducted by the ITD and prosecutions under direct

taxes laws in the last six financial years and current financial year are as under17:

SURVEY STATISTICS

Financial Year No. of Surveys Conducted

Undisclosed Income Detected (In Rupee Crore)

2009-10 4680 4857.1

2010-11 3911 5894.44

2011-12 3706 6572.75

2012-13 4630 19337.46

2013-14 5327 90390.71

2014-15 5035 12820.33

2015-16 (Till May 2015)* 107 97.94

*Figures are provisional

15

The Black Economy in India, by Arun Kumar, pp. 197, 304 16

Lok Sabha, Unstarred Question No.3203 dated 7.8.2015. 17

India. Ministry of Finance, Department of Revenue, Efforts of Government in Tackling Black Money and Lok Sabha, Unstarred Question No.1961 dated 31.7.2015.

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SEARCH & SEIZURE STATISTICS

(In Rs. Crore)

Financial Year Total Undisclosed Income Admitted*

2009-10 963.5 8101.35

2010-11 774.98 10,649.16

2011-12 905.6 14017

2012-13 575.08 10291.61

2013-14 807.84 10791.63

2014-15 761.70 10288.05

2015-16 (Till June 2015)* 4175.37 1761.09

*Figures are provisional

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’:

In order to fulfill the commitment made by the Government to the people of India through the

Parliament, a comprehensive new law titled ‘The Black Money (Undisclosed Foreign Income

and Assets) and Imposition of Tax Act, 2015’ has been enacted which, inter-alia, provides for

separate taxation of undisclosed income in relation to foreign income and assets. Among other

things, the Act seeks to enhance the punishment for wilfull attempt to evade tax, etc. in relation

to foreign assets/income up-to 10 years of rigorous imprisonment and fine.

The avenues of compounding of offences and Income-tax Settlement Commission are

not available under the new law. The Act also provides to include the offence of wilful attempt to

evade tax, etc. in relation to foreign income/assets as a scheduled offence under the Prevention

of Money Laundering Act (PMLA), 200218.

The Act also provided for a compliance window for a limited period to persons who have

undisclosed foreign which they had not disclosed for the purposes of income tax. The

compliance window opened on 1st July 2015 and was open till 30th September 2015 tax at the

rate 30 percent and penalty at the rate of 30 percent is to paid by 31st December 201519.

18

Rajya Sabha, Unstarred Question No.892 dated 28.7.2015. 19

India. Ministry of Finance, Department of Revenue, Press Release, dated 1.10.2015.

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Under the compliance window, 638 number of declarations have been received

disclosing 638 undisclosed assets worth Rs.3,770 crore. The Government will get 60 percent of

the value of these assets-30 percent as tax and 30 percent as penalty. On an average, each

disclosure through this year's window will yield Rs.5.9 crore. Those holding these assets have

time till December 31 to pay the tax and penalty. After the closure of the compliance window,

anyone found holding unaccounted money abroad will have to pay 120 per cent of the value of

assets under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax

Act, 201520.

The stage is now set for the provisions of the Black Money (Undisclosed Foreign Income

and Assets) and Imposition of Tax Act, 2015 to be invoked against defaulters who failed to

make use of the compliance window. The true test of the efficacy of the enactment will be two-

fold: in its ability to deter any further flight of money to offshore destinations in the belief that tax

can be evaded that way, and in the rigour with which investigation and prosecution are pursued

against those who still hold assets abroad. Any undisclosed foreign income that is detected will

henceforth attract tax at the rate of 30 per cent, a penalty of 90 per cent and a 10-year prison

term. With new arrangements in place to share tax-related information among many countries,

this will surely have some deterrence value21.

Other effective measures to curb the menace of Black Money.

(i) The Finance Act, 2015 has amended relevant provisions of the Income-tax Act, 1961 to

prohibit acceptance or payment of any amount as advance or otherwise of Rs. 20,000 or

more in cash in relation to purchase of immovable property. Necessary legislation to

effectively tackle the menace of Benami Transactions was introduced in the Budget

session of the Parliament.

(ii) A Special Investigation Team (SIT) on Black Money, under chairmanship and vice-

chairmanship of two retired judges of Hon’ble Supreme Court, was constituted by the

Government in May 2014. Investigations into cases involving substantial unaccounted

income, particularly black money stashed abroad, are being extensively monitored by the

SIT and directions issued by the SIT are being carried out. The SIT has already

submitted 3 reports to Hon’ble Supreme Court.

20

Business Standard, dated 2.10.2015. 21

The Hindu, dated 8.10.2015

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(iii) Investigations into cases involving undisclosed foreign assets/income has been accorded

the highest priority and Special Units have been constituted under each Director General

of Income Tax(Investigations) to undertake expeditious and focused investigations in

undisclosed foreign assets/income cases.

(iv) India is now a leading force in the efforts to forge a multi-lateral regime for proactive

sharing of financial information known as Automatic Exchange of Information (AEOI)

which will greatly assist the global efforts to combat tax evasion. A decision has also

been taken to enter into information-sharing arrangements with the USA under the

Foreign Account Tax Compliance Act (FATCA) of USA. The AEOI and FATCA will enable

India to get information about financial transactions done by Indian persons in other

countries.

(v) While focusing upon non-intrusive measures, due emphasis has been given on

enforcement measures in high impact cases with a view to prosecute the offenders at the

earliest possible for credible deterrence against tax evasion.

(vi) Double Taxation Avoidance Agreements (DTAAs) with other countries have been

renegotiated to bring the Article on Exchange of Information to International Standards

and India’s treaty network has been expanded by signing new DTAAs and Tax

Information Exchange Agreements (TIEAs) with many jurisdictions to facilitate the

exchange of information and to bring transparency.

(vii) Government has proactively engaged with foreign governments for exchange of

information under DTAAs/TIEAs/Multilateral Convention22.

The Prime Minister in a meeting of leaders of the BRICS countries, on 15 November, 2014, stated that repatriation of black money kept abroad is a priority for the Government of India and sought close global coordination to achieve this objective23.

However, what ought to be of concern to the public is a fact that Finance Minister Arun

Jaitley has also highlighted: the bulk of the black money is within India. A confidential report by

the National Institute of Public Finance and Policy on the true extent of India’s parallel

economy quantified it in 2013 at 75 per cent of GDP. The black economy is powered mainly by

the higher education, real estate and mining sectors. The report had spoken of capitation fees

contributing Rs.5,953 crore to the black money component in a particular year, while real estate

transactions could have generated Rs. 5,68,879 crore. In recent times, letting money idle in tax

havens, which offer safety and confidentiality but not much by way of interest income, is no

22

Rajya Sabha, Unstarred Question No.892, dated 28.7.2015. 23

Rajya Sabha, Unstarred Question No.1798, dated 9.12.2014.

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more the norm. Assets held abroad find their way back to India as investments in business and

participatory notes in the market. The real challenge is in having a regulatory regime that

promotes tax compliance and income disclosure. Preventing black money accumulation may be

more important than even unearthing it24.

24

The Hindu, dated 8.10.2015.