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The Big Picture – Black money: Is it a long haul now?

The debate raised over Black money in parliament has raised more questions than answers.

It seems to be evident now that bringing black money back to India, one of the key election issues, is not going to be an easy task.

There are major hurdles like DTA treaty with confidentiality clause, which needs to be overcome.

There are also issues like where all the black money is stashed and whether we are even aware of it or not.

With such impediments it appears that it may be long haul before any tangible results are available.

The bulk of the black money that is generated in India is within India.

Even the money that was sent abroad, through various means, has come back to India through various routes.

Under the agreement, the names can be revealed for tax purposes and court purposes.

It is being said that by making taxation laws simpler the problems could be solved.

Taxation is not the only reason why people evade taxes. It can also be done to commit illegality.

Participatory notes in stock market are also causing problems. These instruments are used to route black money back to India.

The SIT, set up by the Supreme Court, has given assurance that investigation will be completed by March 31st.

Automatic sharing of information would not help much in this regard as it is only for declared income.