Know what has India planned to bring back black money

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The Special Investigation Team (SIT) constituted by the Narendra Modi government on black money is likely to submit an action taken report on its findings and recommendations on the illegal funds issue to the Supreme Court on Wednesday.

Here is what all has happened so far in this regard:

When was SIT constituted?

• Just a day after assuming office, the Narendra Modi government, in its first decision, constituted a special investigative team (SIT) on May 27 to unearth black money.

• The SIT is headed by former Supreme Court judge MB Shah and includes Revenue Secretary, CBI and IB directors, Enforcement Directorate official, CBDT Chairman and RBI deputy governor.

• Former Supreme Court judge Arijit Pasayat is the vice-chairman of the panel.

Why was SIT formed?

The decision to constitute the SIT was taken by the new government for two main reasons:

• Narendra Modi during his poll campaigns had extensively raised the issue of black money stashed in foreign locations and had promised to unearth black money and utilize it for nation's development, if voted to power.

• A few days after Narendra Modi-led NDA won Lok Sabha polls, the Supreme Court had granted the new government one week's time to constitute the SIT for monitoring of all black money cases.

• Law and Telecom Minister Ravi Shankar Prasad had then told reporters, "In the first Cabinet of the new the light of the directions of the SC, we have constituted an SIT for unearthing black money... This was an important issue for us."

What is SIT likely to tell SC?

• The SIT is expected to submit an action taken report, to the Supreme Court, on its findings and recommendations on the illegal funds issue.

• According to sources, the team is understood to have chronicled a number of potential black money and illegal foreign funds cases that are expected to deliver results in the near future.

• The apex court will be informed about the developments which have taken place since the government notified the SIT on the directions of the Supreme Court, sources said.

• The panel is also understood to have prepared a detailed dossier on the recommendations made by the panel to various government agencies in the investigative and enforcement domain.

How much of India's black money stashed abroad?

• According to a ‘White Paper on Black Money in India' report, published in May 2012, the Swiss National Bank estimates that the total amount of deposits in all Swiss banks, at the end of 2010, by citizens of India were Rs 9,295 crore or $2.1 billion.

• However, media reports say that the total amount of money parked in Swiss Banks is around Rs 1400 crore.

Over Rs 1 lakh crore illegal income detected in last fiscal

• Earlier last month the government has detected Rs 1,01,181 crore of undisclosed income in the last financial year. The money shows a figure which is more than double as compared to the search and seizure action undertaken by the Income Tax department during 2012-13 to check black money.

• According to official data, the I-T department detected undisclosed income worth Rs 10,791.63 crore in search operations during the just concluded 2013-14 fiscal while it also found unreported income of Rs 90,390.71 crore in survey operations conducted during the same period across the country.

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