Government Panel May Revisit Harsh Clauses in Black Money Act
The article reports that the government has constituted a committee or panel to review the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. This review aims to revisit some of the legislation’s stricter clauses.
Key Focus of the Review
- Revisiting Harsh Clauses: The panel’s core objective is to re-evaluate the most stringent or “harsh” provisions of the Act, which primarily deal with the criminalization of offenses and the imposition of severe penalties.
- Decriminalization Potential: The review is likely part of the government’s broader initiative to decriminalize minor or technical offenses across various fiscal laws. The goal is to ensure that the Act’s punitive measures are reserved strictly for serious cases of intentional tax evasion and willful non-disclosure, rather than for procedural or inadvertent lapses.
- Improving Business Sentiment: By moderating some of the harshest penalties, the government seeks to foster a fairer tax environment and improve business confidence, particularly for resident individuals and entities with genuine overseas business or assets.
- Original Intent: The Black Money Act was originally introduced to deal with the menace of undisclosed foreign income and assets by imposing severe tax and penalty provisions, including prosecution leading to imprisonment. The current review aims to refine its application.
Source : Econimic Times