The Indian Government's response to the black money issue is getting stronger and the Income Tax notice to the HSBC is yet another step in that direction.
HSBC which confirmed that it had received the Income Tax department notice may face a heavy fine for allowing persons to park funds in their bank who had done so with an intention of willfully evading tax.
100 more prosecution complaints may be filed by IT dept
Once the IT department gets a reply from HSBC there is a proposal to file at least another 100 prosecution complaints against persons who have parked black money in the HSBC.
This may help the government of India recover an additional Rs 6300 crore which has been parked abroad. Finance Minister Arun Jaitley had assured the nation that the process would be complete by March 31.
240 cases under investigation
There are currently 240 cases relating to HSBC related bank accounts that are being probed at the moment. Investigations would show that in total there may be around 628 accounts in the HSBC banks belonging to Indians.
While there is around Rs 6300 to be recovered the government has already managed to get back Rs 3700 crore.
According to the government out of the 628 accounts, 200 belonged to non-resident Indians or were non traceable. In some of these accounts there was no balance too which meant that the money had been moved out.