Indian black money
Encyclopedia
Black money refers to funds earned on the black market, on which income and other taxes has not been paid. The total amount of black money deposited in foreign banks by India
ns is unknown, but one estimate by R Vaidyanathan, a Professor of Finance, estimated the total at over ₹
7,280,000 Crore
s (US$1.4 trillion).
asked why the names of those who have stashed money in the Liechtenstein Bank have not been disclosed. The court argued that the government should be more forthcoming in releasing all available information on what it called a "mind-boggling" amount of money that is believed to be held illegally in foreign banks.
In August 2010, the government revised the Double Taxation Avoidance Agreement to provide means for investigations of black money in Swiss banks. This revision, expected to become active by January 2012, will allow the government to make inquiries of Swiss banks in cases where they have specific information about possible black money being stored in Switzerland.
, the British Virgin islands, the Isle of Man
, the Cayman Island, the British island of Jersey, Monaco
, St. Kitts and Nevis, Argentina
and the Marshal Islands - where money is believed to have been stashed away.
was arrested on charges of stashing over 36,000 crore in foreign banks.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
ns is unknown, but one estimate by R Vaidyanathan, a Professor of Finance, estimated the total at over ₹
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
7,280,000 Crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
s (US$1.4 trillion).
Court cases
In January 2011 the Supreme Court of IndiaSupreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
asked why the names of those who have stashed money in the Liechtenstein Bank have not been disclosed. The court argued that the government should be more forthcoming in releasing all available information on what it called a "mind-boggling" amount of money that is believed to be held illegally in foreign banks.
Black money in Swiss banks
While official numbers are not available, Swiss banking officials have said that the largest depositors of illegal foreign money in Switzerland are Indian.In August 2010, the government revised the Double Taxation Avoidance Agreement to provide means for investigations of black money in Swiss banks. This revision, expected to become active by January 2012, will allow the government to make inquiries of Swiss banks in cases where they have specific information about possible black money being stored in Switzerland.
Tax Information Exchange Agreement
To curb black money, India has signed TIEA with 10 countries - Bahamas, BermudaBermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
, the British Virgin islands, the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
, the Cayman Island, the British island of Jersey, Monaco
Monaco
Monaco , officially the Principality of Monaco , is a sovereign city state on the French Riviera. It is bordered on three sides by its neighbour, France, and its centre is about from Italy. Its area is with a population of 35,986 as of 2011 and is the most densely populated country in the...
, St. Kitts and Nevis, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and the Marshal Islands - where money is believed to have been stashed away.
Prominent cases
In April 2011, Hasan Ali KhanHasan Ali Khan
Hasan Ali Khan is an Indian billionaire businessman. In 2007, authorities began investigating Khan for suspicion of money laundering. Khan was arrested by India's Directorate General of Economic Enforcement under suspicion of money laundering, and was in court in July 2011 for that case...
was arrested on charges of stashing over 36,000 crore in foreign banks.
See also
- Ramlila ground protests
- International asset recoveryInternational asset recoveryInternational asset recovery is a term used to describe efforts by governments to repatriate the proceeds of corruption hidden in foreign jurisdictions. Such assets may include monies in bank accounts, real estate, vehicles, arts and artifacts, and precious metals...
- Mauritius routeMauritius routeMauritius route is a channel to evade paying taxes in India amounting to thousands of crores of rupees with the help of loopholes in a bilateral agreement on double taxation.- Double Taxation Avoidance Convention:...
- Corruption in IndiaCorruption in IndiaPolitical, bureaucratic, corporate and individual corruption in India are major concerns. A 2005 study conducted by Transparency International in India found that more than 55% of Indians had first-hand experience of paying bribes or influence peddling to get jobs done in public offices...
- 2011 Indian anti-corruption movement2011 Indian anti-corruption movementThe 2011 Indian anti-corruption movement is a series of ongoing demonstrations and protests across India intended to establish strong legislation and enforcement against endemic political corruption...
- United Nations Convention against CorruptionUnited Nations Convention against CorruptionThe United Nations Convention against Corruption is the first legally binding international anti-corruption instrument. In its 8 Chapters and 71 Articles, the UNCAC obliges its States Parties to implement a wide and detailed range of anti-corruption measures affecting their laws, institutions and...