The government is plans to unearth all the black money stashed by Indians abroad. Wealth tax up to one percent on cash exceeding one crore rupees in deposits in banks located outside the country may soon be a realty.
The Direct Tax Code (DTC) bill consists of such a proposal. The bill is currently being scrutinised by the parliamentary panel.
"For the purpose of levy of wealth tax, taxable assets have been defined to include deposits in banks located outside India in the case of individual, unreported bank deposits in the case of others...," the Finance Ministry said, adding that this is one of "specific new measures for unearthing black money".
The document also states that the DTC proposes a reporting requirement that makes it mandatory on an Indian citizen to furnish details of their investment and interest in any entity outside India.
The new tax regime would also include an assessee's interest in a foreign trust or company under taxable assets.
The parliament approval for this bill is expected to set in by the next fiscal year . Some of the provisions of this bill are expected to be included in the Budget to be presented on March 16 th.
In the current fiscal only Rs 365 crore is targeted from wealth tax out of the total tax revenue of Rs 9.32 lakh crore. This shows that wealth tax forms a very small portion of the total tax revenue in the current scenario.
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