The Centre has proposed several measures like including income-tax ret-urn assessment of up to 16 years with regard to assets held abroad and tax deduction at source (TDS) on transfer of immovable property and gold purchase to check black money.
“I propose a series of measures to deter the generation and use of unaccounted money,” finance minister, Mr Pranab Mukherjee, said while presenting the Budget.
The government plans TDS on transfer of immovable property (other than agricultural land) above a specified threshold, he said.
Mr Mukherjee also said he proposed to introduce a General Anti Avoidance Rule (GAAR) in order to “counter aggressive tax avoidance schemes, while ensuring that it is used only in appropriate cases, by enabling a review by a GAAR panel”.
He proposed come out with a White Paper on black money in the current Parliament session.
Besides, the Budget also proposes compulsory rep-orting requirement in ca-se of assets held abroad and tax collection at sou-rce on trading in coal, lignite and iron ore.
The Centre also plans TDS on cash purchase of bullion or jewellery in excess of Rs2 lakh. It has also been proposed to “increase the onus of proof on closely-held companies for funds received from shareholders as well as taxing share premium in excess of fair market value”.
Mr Mukherjee proposed taxation of unexplained money, credits, investme-nts, expenditures “at a rate of 30 per cent irresp-ective of the income slab”. The government also plans to allow I-T authorities to reopen assessment cases up to 16 years in rel-ation to assets held abroad.
Mr Mukherjee also proposed a system of Adva-nce Pricing Agreement Agreement (APA) to bring down tax litigation and provide tax certainty to foreign investors.
He said this was releva-nt in a globalised economy with expanding cross-border production chains and growing trade.