It becomes pertinent to mention that ‘Black Money’ was one of the agendas that the BJP Government had promised to target if they got to power. With a year at the centre this piece highlights the efforts in that direction.
Black Money as such has been a very elusive subject for the common masses.The first efforts towards getting a hold was the Black Money Bill, 2015.After forming a Special Investigation Team this was one such effort that was one of its kind.The foreign assets and income holders are hence expected to declare their assets and comply with the government norms till a due date of September 2015. Well with the legislation being passed in the Parliament the productivity or effectiveness will be a test of time to come
The Indian Government signed a Foreign Assets Tax Compliance Agreement(FATCA) with USA.This is required in the directions to go ahead with the collection of income from the Tax evaders.The issues concerning Security Exchange Board of India with this agreement lie with the Compliance Cost and the Lack of transparency of such deal from USA.But an effort on this stage would be laying ground for further plans.India happens to also sign MCAA Multilateral Competant Authority Agreement a systematic effort to curb tax escape and exchange information from a pool of around 59 Countries.It also proposed a network to exchange the information of foreign account holders in the UN last year.
Thus it can be concluded saying that the foundation stones and concerted efforts are being taken but more significant will be the vigilance and the effectiveness of such activities to achieve the well said target.
India is badly affected due to poor collection of Taxes.Major chunk of population still remains to be incapable of tax payments and on the other hand tax evasion is rampant among the Super rich population.A survey by Socio Economic Caste census highlights the Poverty in Rural India and deprivation of people from basic needs such as land, proper housing. A Country will develop only when the market activities are balanced with providing a support to the downtrodden class of society.Hence along with this restrictive policies it will need a boost in tax collection and restructuring the collection system.A failure to achieve this will hence exacerbate the already prevailing economic inequality and hence these efforts even though commendable are just a beginning of a journey to be travelled.