Government to check generation of black money: President

NEW DELHI: Expressing government's commitment to deal with the menace of black money, President Pratibha Patil today said "many steps" are being taken to contain generation of illicit wealth and preventing it from flowing out of the country.

"We are taking many steps to contain the generation and outflow of illicit funds from the country and for opening channels for getting wider information on black money from other countries," Patil said while addressing the joint sitting of Parliament.

She said the Government has remained committed to providing an "honest and more efficient Government" and has taken several important steps towards that end.

To tackle the menace of black money, Patil said the Government has initiated action on various fronts, including the enactment of the Benami Transactions (Prohibition) Act, amendment of the Prevention of Money Laundering Act and setting up of a special committee to examine measures to strengthen laws to curb black money generation.

Other steps, include commissioning of studies by independent agencies to assess the quantum of black money both inside and outside the country and framing of the General Anti-Avoidance Rules and Controlled Foreign Company Rules under the proposed Direct Taxes Code (DTC).

Patil said further said steps are also being taken for getting information on black money from other countries.

The measures, include operationalisation of new Income Tax Overseas Units, signing of new Double Taxation Avoidance Agreements and new Tax Information Exchange Agreements, besides better implementation of Transfer Pricing and International Taxation provisions.

Opposition is likely to raise the issue of bringing back black money stashed abroad in the Budget Session.