Indian Government set up Panel under CBDT Chairman to tackle Menace of Black Money

The Indian government on 28 May 2011 announced the setting up of a panel to examine tightening of laws to curb the growth of black money as well as to suggest ways to declare illegally generated wealth as national asset.

The committee to be headed by the chairman of the Central Board of Direct Taxes (CBDT) will also include the director, Enforcement Directorate(ED), Director-General, Directorate of Revenue Intelligence (DRI), Director-General (Currency), and other top tax and revenue department officials. The commissioner of income tax (Investigations) of the CBDT would be its member secretary.

The committee will examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery. The committee will also study the existing legal and administrative framework to deal with the menace of generation of black money through illegal means. It will discuss and suggest steps for enacting or amending laws to confiscate and recover such assets, and for providing exemplary punishment against its perpetrators.

The panel will consult all stakeholders and is expected to submit its report within six months.

Sudhir Chandra is the current chairman of CBDT.

The initiative marked the UPA government’s response criticism from the courts, political parties and civil society groups for failing to tackle the issue of Black Money.