Black money: I-T signs MoUs for conducting study
The government has set the ball rolling for estimating black money by signing agreements with three leading think-tanks NCAER, NIFM and NIPFP to conduct study on unaccounted income generated inside and outside the country.
New Delhi: The government has set the ball
rolling for estimating black money by signing agreements with
three leading think-tanks NCAER, NIFM and NIPFP to conduct
study on unaccounted income generated inside and outside the
They have been given 18 months to complete the study and
also suggest administrative and legal measures to prevent
generation of black money, according to sources.
The first study on unaccounted money was conducted by
NIPFP way back in 1985.
The think-tanks would also identify important sectors of
the economy in which unaccounted money in generated and
examine causes and conditions that result in such unaccounted
The other term of reference is "to suggest ways and means
for detection and prevention of unaccounted money and bringing
the same into the mainstream of economy".
The income tax department entered into MoU with
National Council for Applied Economic Research (NCEAR),
National Institute of Public Finance and Policy (NIPFP) and
National Institute of Financial Management (NIFM) last week
for conducting the study at a total cost of over Rs 7 crore.
The think-tanks would also profile the nature of
activities engendering money laundering both inside and
outside the country with its ramifications on national
The three institutes would also suggest methods to be
employed for bringing to tax unaccounted money kept outside
Besides, it would estimate the quantum of unpaid tax due
to evasion by registered corporate bodies.
Indian government is facing intense pressure from the
opposition parties, as also the Supreme Court, on issue of
black money allegedly stashed away by some Indians in Swiss
banks and other tax havens.
Expressing serious concern over generation and circulation
of black money, Finance Minister Pranab Mukherjee had said in
his Budget speech that the government has adopted a five-fold
strategy to deal with the menace.
"The generation and circulation of black money is an area
of serious concern. To deal with this problem effectively, the
government has put into operation a five-fold strategy which
consists of joining the global crusade against black money,"
Mukherjee had said.