If a master stroke is to be selected from the just presented budget, it is the multifaceted fight against black money announced by Finance Minister Arun Jaitely. Notwithstanding the efforts on areas like infrastructure and other measures, the black money countering measures in this budget appeals to be more on target.
So far, in the past, the Indian society was keenly watching its political classes’ resolve to take affirmative action against the menace of black money. Often they found that the rich evaders skid between the laws and administrative machinery while protecting their illegal income. But this time, the effort by the FM is capable of blocking such an event in the future. The hidden cash inside and parked outside “eats into the vitals of our economy and society,” Jaitely has observed once.
The budgetary measures are simply harsh enough and hence are not superficial in making a face to face fight against black money.
An interesting feature of the step taken this time is the proposed enactment of two legislations- one to check domestic black money and the other to check black money stored abroad.
Though the new legislations were there under proposal, FM has made some features of the new law. These features include upto ten years imprisonment and 300% penalty tax for concealment of income in foreign countries.
In the same way, there are some notable measures proposed under the new law to check domestic tax evasion. The important measure is confiscation of binami property and prosecution of the evader. Binami property is the hero in the Indian real estate market.
Another decision which may effectively curb domestic black money is the mandatory PAN requirement for transaction in immovable property up to Rs 1 lakh. At present the limit is Rs 5 lakh.