Black money issue will be tackled: President

NEW DELHI - The central government is concerned about the ill effects of black money and stands committed to tackling the problem, President Pratibha Patil told parliament here Monday.

“The issue of black money has attracted a lot of attention in the recent past, especially that allegedly stashed away in foreign banks. The government fully shares the concern about the ill effects of black money, whether generated by evasion of taxes on income earned legitimately or through illegal activities,” Patil said in her address to the joint session of parliament.

She said the government stands committed to tackling the menace frontally.

“It requires diligent, sustained effort by all law enforcement agencies, including those of state governments. The government has taken many steps to strengthen the legal framework, build new institutions, and improve capacity to tackle this problem,” she said.

She said a multi-disciplinary study has been commissioned to examine its ramifications for national security and recommend a suitable framework to tackle it.

“The government is also working closely with the international community, especially through the G-20, to expedite the process of identification and recovery of such money,” she said.

Patil said India is now a member of the Financial Task Force in recognition of its anti-money laundering and anti-tax evasion measures.

“India has also gained membership of the Eurasian Group and the Task Force on Financial Integrity and Economic Development. The government has taken steps to facilitate exchange of information for tax purposes with such countries and entities where Indian citizens may have parked their money,” she said.

Patil said the early results have been encouraging.

“These steps have led to additional collection of taxes of Rs.34,601 crore and detection of additional income of Rs.48,784 crore. The government will spare no effort in bringing back to India what belongs to it and to bring the guilty to book,” she added.