Govt Raises ₹35,104 Crore Tax Demand Under Black Money Law

Government Raises ₹35,104 Crore Tax Demand Under Black Money Law

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The Indian government raised a tax demand of ₹35,104 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 over the last decade, but actual recovery remains low at ₹338 crore.

Govt Raises ₹35,104 Crore Tax Demand Under Black Money Law

Tax Demand and Recovery under Black Money Law

  • Between July 1, 2015, and March 31, 2025, tax demand raised under the Act totaled ₹35,104 crore.
  • This includes ₹13,385 crore from penalties under various sections of the law.
  • Despite high demand, the actual recovery (tax, penalty, interest) is only around ₹338 crore.
  • A total of 163 prosecution complaints were filed by March 31, 2025.
  • Tax demands are created through completed assessments amounting to ₹21,719 crore.

Data on Undisclosed Foreign Income and Swiss Bank Deposits

  • Indian-linked funds in Swiss banks reportedly tripled in 2024 to about 3.5 billion Swiss francs (~₹37,000 crore).
  • Swiss National Bank (SNB) data includes customer deposits, liabilities, and bank dues across multiple jurisdictions.
  • The Swiss authorities caution against using SNB data to analyze deposits held only by Indians or country-wise breakdowns.
  • The government stated there is no centralized data for country-wise undisclosed foreign income or tax demand.
  • Indian tax authorities rely on Automatic Exchange of Information (AEOI) agreements for cross-border data sharing.

Understanding Black Money Act and Tax Enforcement :

●  The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 aims to curb offshore tax evasion.

●  It mandates disclosure of foreign assets and imposes penalties and prosecution for violations.

●  The Act is enforced through tax assessments, penalties, and prosecution complaints.

●  Automatic Exchange of Information (AEOI) enables countries to share financial data to detect black money.

●      Despite efforts, tax recovery remains challenging due to complex cross-border asset holdings and legal processes.