Tracking the flight of black money

It is conceded on all hands that the extant system of monitoring high value transactions through Annual Information Return (AIR) is better and more meaningful than the economic criteria scheme for mandatory filing of income-tax returns. AIR is an excellent smoking-out regime. It calls upon recipients of high amounts or registrars of high value transactions to notify the Income-Tax Department.
As it is, the registrar registering immovable properties have to notify the Department if the transaction value is Rs 30 lakh or more; the Reserve Bank of India and companies have to notify if anyone subscribed to bonds for more than Rs 5 lakh during a year; companies have to notify the names of persons putting in more than Rs 1 lakh as subscription amount in an IPO or FPO; mutual funds if they mobilise more than Rs 2 lakh as subscription from a person and banks if a person has during the year made payments upwards of Rs 2 lakh through its credit cards or deposited more than Rs 10 lakh in cash into his savings account with the bank. All these are required to be notified at the end of the year.
And for good measure, the person who are under surveillance, as it were, are also obliged to disclose all these details in their tax returns. The idea is the two have to jell — the one reported by those coming into contact with high value transactions and the one reported by those indulging in them.
09/07/11 S Murlidharan/Business Line

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Categories: Airports Jul 2011, Indian Aviation- In General Jul 2011