Here's how CBDT plans to tackle tax evaders

The CBDT has its work cut out for it. One the one hand, it is battling black money in India. On the other, it is struggling with uncooperative tax havens. And it may have a solution for this second issue.

Prakash Chandra, member of CBDT says, “Tax department is posting 10 officers as a part of overseas units who will be located in imp countries with whom we need this exchange of information, which will help, in our efforts at countering tax evasion.”

This is in keeping with pressure from the parliamentary standing committee for India to be more assertive with tax havens.

BP Gour, DG - Investigation, IT Department says, “The Central Board Of Direct Taxes has been able to get many treaties revised, with some of the tax havens where now there is a provision for exchange of banking information which was not existing earlier, so we hope that in course of time, things will get much better.”

To tackle the problem of black money domestically, the taxman has identified 2 specific sectors.

Gour says, “There are certain areas like real estate and diamond trade where there is a lot of circulation of black money, and wherever we have the information and that is actionable information,
that we have some evidence….we have done some searches.”

Officials say raids have unearthed instances where diamond merchants have manufactured entire books to launder black money. And now that the modus operandi has been established, authorities are working on bringing them to book.