Has the Government Increased Tax Demand on Black Money to Rs 35,104 Crore?
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Synopsis
Discover how the Indian government has escalated tax demands related to black money to an astonishing Rs 35,104 crore over the past decade. This significant action, stemming from the Black Money Act, aims to address undisclosed foreign income and assets. Read on for detailed insights into the financial implications and legal proceedings.
Key Takeaways
- Total tax demand raised: Rs 21,719 crore
- Total penalties imposed: Rs 13,385 crore
- Recoveries made: Rs 338 crore
- Prosecution complaints filed: 163
- Research context: Swiss National Bank data indicates rising Indian funds.
New Delhi, July 29 (NationPress) The government has announced a tax demand totaling Rs 21,719 crore stemming from assessments under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for the period from July 1, 2015 to March 31, 2025, as reported to Parliament on Tuesday.
In addition, a penalty demand of Rs 13,385 crore has also been raised (up to March 31, 2025) due to various infractions under the same Act, as stated by the Minister of State for Finance, Pankaj Chaudhary, in a written response to the Rajya Sabha.
“From July 1, 2015, to March 31, 2025, a total recovery of Rs 338 crore has been made against tax, penalty, and interest demands raised under the Black Money Act. However, specific collections related to countries or types of foreign holdings are not tracked separately,” he noted.
Additionally, as of March 31, 2025, 163 prosecution complaints have been lodged under various provisions of the Black Money Act.
Each inquiry is carried out on a case-by-case basis by relevant authorities.
According to the minister, tax demands stemming from undisclosed foreign income or assets can involve numerous jurisdictions, and there is no central record of demand categorized by country.
“Media reports citing statistics from the Swiss National Bank (SNB) indicate an increase in Indian-linked funds in Swiss banks for 2024 compared to the previous year. Swiss authorities clarify that SNB data encompasses amounts due for customer deposits (including those in Swiss banks' foreign branches), other liabilities, and amounts owed to banks,” Chaudhary added.
Swiss authorities further emphasized that the annual SNB banking statistics should not be employed to analyze deposits held by Indian residents in Switzerland.
Point of View
I believe the government's actions reflect a serious commitment to tackling black money. The substantial tax demands and penalties indicate a robust approach to curbing undisclosed foreign income and assets. This move is essential for enhancing transparency and accountability in our financial system.
NationPress
30/07/2025
Frequently Asked Questions
What is the total tax demand raised by the government?
The government has raised a total tax demand of Rs 21,719 crore under the Black Money Act.
What penalties have been imposed?
Penalties totaling Rs 13,385 crore have been raised under various sections of the Black Money Act.
How much has been recovered so far?
A recovery of Rs 338 crore has been made against the demands raised under the Black Money Act.
How many prosecution complaints have been filed?
As of March 31, 2025, a total of 163 prosecution complaints have been lodged under the Black Money Act.
What do Swiss National Bank statistics indicate?
Reports suggest that Indian-linked funds in Swiss banks have increased in 2024 compared to the previous year, according to Swiss National Bank statistics.
