Black Money eradication measures,

To check black money menace, the government today announced 10-year imprisonment for hiding foreign assets, along with a host of other tough measures including dis incentivising of cash dealings in real estate and other transactions.

Besides framing new legislation, the government will also take steps to popularize use of credit and debit cards and putting a cap on cash transactions, while quoting PAN will be mandatory for all sales. 

When the measures regarding curbing of black money will be enacted, India will join the league of countries like Singapore, UK and the US, under which those hiding income and evading tax in relation to foreign assets can be slapped with a prison term of up to ten years.

In fact, the proposed imprisonment penalty, as also the monetary penalty, could be higher than many other countries in most of the cases. The new law would also provide for a penalty for such concealment of income and assets at the rate of 300 per cent of tax, while offenders will not be permitted to approach the Settlement Commission.

More over Non-filing of return or filing with inadequate disclosure of foreign assets will itself be liable for prosecution with punishment of rigorous imprisonment up to seven years.

Under the US laws, the federal penalties for each count of conviction of tax crimes include prison term of maximum one year and a fine of US dollar 100,000 for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents. Besides, the penalties include prison term of up to ten years and a fine of US dollar 100,000 for "conspiracy to defraud with respect to false refund claims". Other penalties include a maximum of three years in prison and a fine of US dollar 250,000 for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a US dollar 250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.

In the UK also, the 'top tax criminals' of the year 2012 -- a list of 32 individuals -- were given a total of over 150 years imprisonment. The UK's tax authorities have recently put in place tougher penalties for those who hide assets and income abroad, by doubling the maximum penalty for offshore tax evasion to 200 per cent of the tax dues.

Under the Singapore's Income Tax Act, any person convicted of intentionally evading tax or assisting any other person to evade tax may be penalized four times the amount of tax undercharged and may also be fined an amount not more than 50,000 Singapore dollars or jailed for up to 5 years, or both. Besides, Singapore's Goods and Services Act provides that any person convicted of intentionally evading tax or assisting any other person to evade tax may be penalized three times the amount of tax undercharged and may also be fined an amount of 10,000 Singapore dollars or jailed for up to 7 year

To check black money menace, the government today announced 10-year imprisonment for hiding foreign assets, along with a host of other tough measures including dis-incentivising of cash dealings in real estate and other transactions.

Besides framing new legislations, the government will also take steps to incentivise use of credit and debit cards and putting a cap on cash transactions, while quoting PAN will be mandatory for all sale  .. 
The Special Investigation Team (SIT) on black money has welcomed the announcements made in the Budget to tackle menace of illegal funds and similar assets stashed abroad even as it cautioned that good results in this direction would come only after new laws and measures are implemented in a proper manner.