India to set up new agency to trace black money: Pranab
New Delhi, May 24 (IANS) India will soon set up a directorate of criminal investigation in its income tax department to deal with issues related to tax crimes and trace black money, Finance Minister Pranab Mukherjee said Tuesday.
"The directorate will deal with tax crimes related to illegal activities. It will locate crimes or criminals by tracing the movement of money before, during and after a crime is committed,” Mukherjee said while addressing the top executives of the income tax department here.
He said the new directorate would also strengthen the ongoing efforts of the income tax department in dealing with issues of black money.
Addressing the 27th annual conference of chief commissioners and director generals of the income tax department, Mukherjee said the government has already given its approval for the new agency. The directorate of criminal investigation will be a part of the income tax department.
The finance minister also emphasised the need for "zero tolerance on corruption" in the income tax department.
Mukherjee said he was confident of implementing the Direct Tax Code Bill from April 1, 2012. The bill is currently under discussion at the Parliament Standing Committee.
He asked the income tax department to get ready for transition from the Income Tax Act, 1961, to the Direct Tax Code Bill regime.
"It would include various issues like redrawing of business processes, rules, forms, training needs of manpower and the necessary infrastructure. This task should be completed in a mission mode to avoid any inconvenience to tax-payers and also to maintain continuity in revenue buoyancy," the finance minister said.
He said the income tax collection during the current fiscal was likely to increase 20 percent to Rs.5.33 lakh crore.
The ratio of direct tax collection to gross domestic product (GDP) is likely to increase to 7.62 percent by 2014-15 from the current fiscal's 5.66 percent, the minister said, adding that the direct tax revenue collection was likely to reach Rs.8.3 lakh crore by 2014-15.