International transactions will be transparent by 2017, says Finance Minister Arun Jaitley

New Delhi: Finance Minister Arun Jaitley on Friday said the government will next week take up for consideration the new black money bill in the Lok Sabha to effectively deal with the menace of unaccounted wealth stashed abroad.

"Next week, I intend to take up before Parliament the law with regard to taxation of undisclosed assets and incomes abroad," Jaitley said at the 'Enforcement Day' function organised by the Directorate of Enforcement.

The government in March introduced 'The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015' which provides for heavy penalty and stiff punishment of up to 10 years for stashing unaccounted funds abroad.

There will also be a window to help persons having such funds abroad to come clean by paying tax and penalty. Jaitley said the government has been taken steps to unearth black money stashed abroad.

"There are large number of cases, prosecutions against those offenders have been filed in last few months. The assessment of hundreds of those cases have been completed. 121 prosecutions have been filed by tax Department against them," Jaitley said.

With the international community including G-20 leaders taking various initiatives, it would become difficult for people to hide wealth within couple of years.

Jaitley said India is foremost among a large number of countries that are taking interest in the G-20 initiative on automatic transmission of information with regard to monetary transaction.

"By 2017, the target is that all transactions would become transparent. Each country would go out of way to cooperate with us by 2017 are going to make it extremely risky for anybody to have unlawful assets or unlawful transaction of money," he added.

The Finance Minister said India has to prepare people for change, which would come into effect from 2017.

The Supreme Court had appointed the Special Investigation Team (SIT), which is keeping a close eye on the system that the government is setting up and enhancing the ability to investigate those cases.

Jaitley said, "It's quite a precarious situation for the offenders as we watch the run up to 2017 with each passing day, situation would become precarious.

"It is for this reason steps we have been taking some at the instance of SIT and some at our own initiative steps to squeeze unlawful assets, unlawful money transaction or black money transaction with in the country or outside the country, they hurt the whole system."

If the black money gets included in the system, the growth rate would be higher, taxes would be higher and also the ability to lower tax rate would be higher, he said.

"Therefore, in the larger public interest, not transacting in black money now becomes a way of life. It would probably (help) you sleep well and protect you from penal consequences," he said.