A new report on Indians stashing their black money in tax haven and assets abroad illegally is startling.
As per a report in the Times of India, senior economists from the Bank of Italy have come up with an estimate on black money. The report states that Indians have stowed between $152-181 billion in black money overseas.
It however mentions that the calculation indicates only cash deposits since it is “impossible to get a handle on other wealth invested in physical assets like real estate, gold or art”, the TOI report further said.
It may be recalled that in a stern warning to black money holders, the government last month said those caught with illicit wealth within the country would have to cough up 90 percent in tax and penalty and also face up to 7 years in jail if they fail to declare it during the four-month compliance window.
The window, announced by Finance Minister Arun Jaitley in his Budget 2016-17, will begin on June 1 and provides an opportunity to avoid prosecution with payment of 30 percent tax and 15 percent penalty.
After the end of the window, the penalty will increase to 60 percent while 30 percent tax will also have to be paid—thus doubling the total payout to 90 percent from 45 percent.