Directorate of Criminal Investigation (DCI)

The Government has not dismantled the Directorate of Criminal Investigation (DCI) of the Income Tax Department. The date of last search conducted by DCI was on 27.4.2012 and last survey conducted by DCI was on 30.3.2015.

Appropriate action against evasion of taxes/illicit money is an on-going process. Such action under direct tax laws includes investigation, searches, surveys, assessment of income, levy of taxes, penalties etc, and prosecution of accused persons. The Government has taken effective measures to curb the menace of black money in the country. Such measures include

(i) introduction of a comprehensive new law in the ongoing Budget Session 2015, specifically to deal with black money stashed abroad – The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 – inter alia, providing for stringent penalties (equal to three times the amount of tax payable) and prosecutions (rigorous imprisonment upto ten years with fine) in this regard;

(ii) constitution of a Special Investigation Team (SIT) in May 2014, Chaired and Vice-Chaired by two former judges of the Hon’ble Supreme Court, inter alia, to deal with issues relating to black money stashed abroad;

(iii) while focusing upon non-intrusive measures, due emphasis on enforcement measures in high impact cases with a view to prosecute the offenders at the earliest possible for credible deterrence against tax evasion;

(iv) strengthening and streamlining the information collection and enforcement mechanism, inter alia, through extensive use of information technology, capacity building etc:

(v) joining the global efforts to combat cross-border tax evasion and tax fraud and to promote international tax compliance, including supporting the implementation of a uniform global standard on Automatic Exchange of Information on a fully reciprocal basis facilitating exchange of information regarding persons hiding their money in offshore financial centres and tax havens;

(vi) renegotiation of Double Taxation Avoidance Agreements with other countries to bring the Article on Exchange of Information to International Standards and expanding India’s treaty network by signing new DTAAs and Tax Information Exchange Agreements (TIEAs) with many tax jurisdictions to facilitate the exchange of information and to bring transparency;

(vii) Proactively engaging with foreign governments for exchange of information under the provisions of DTAAs/TIEAs/Multilateral Convention.

The Government has put in place appropriate regulatory mechanism to check illicit movement of money out of the country. Such mechanism includes regulatory framework for making foreign remittances, taking appropriate action in cases involving misuse of the medium of trade for moving money out of the country illegally including through overvaluation in imports, undervaluation in exports, remitting foreign exchange on forged import documents, payments/remittances for non-genuine purchases of goods/services/technical know-how etc.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Rajya Sabha today. (Source- PIB – Ministry of Finance Press Release Dated- 12-May, 2015)

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