(Image source from: Cabinet Approves the Bill of Whipping the tax-evasion offenders})

The government seems committed on the promise made by the Finance Minister Arun Jaitley during his budget speech of rigorous imprisonment of up to 10 years to the black money offenders. The bill, Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015 will not permit the offenders to approach the Settlement Commission with the penalty at the rate of 300 per cent of taxes will be levied on the concealed income and assets.

The bill also made provisions of imprisonment up to 7 years to non-filing of income tax returns or filing or returns with inadequate disclosure of foreign assets. Concealment of income and assets and evasion in relation to foreign assets will be prosecutable with punishment of 10 years of rigorous imprisonment. As the bill is dealing with the money matters, it should be introduced in Lok Sabha with prior permission by the President of India.

Along with individuals and financial institutions, entities and banks will also fall in the vicinities of the bill directives. Concealment of income or tax evasion in relation to a foreign asset will be made "predicate offence" under the PMLA, enabling enforcement agencies to attach and confiscate such assets.

The stringent bill approved by the cabinet can ensure no tax evasions and concealment of income associated with foreign assets and hidden properties. After clearance by the Lok Sabha the bill has to be tested in Rajya Sabha.

-Kannamsai