Black money: Notice to 50 Indians with LGT a/cs
13 May 2009, 0056 hrs IST, M Padmakshan, ET BureauThe list, provided by the German government, reportedly contain the names of some prominent Indian businessmen and industrialists. However, the Indian government is under obligation not to make the names public as they were provided under the Indo-German Double Taxation Avoidance Agreement (DTAA).
The information exchanged under DTAA is confidential, but the government is free to act upon the information.
A way to bring money to India
Mahesh Jethmalani, senior advocate, says the prospect of prosecution could be the most effective way of bringing such money back to India.
The government, in an affidavit to a public interest litigation filed by noted jurist Ram Jethmalani and four others, told the Supreme Court that it has the names of Indians holding accounts in LGT Bank.
However, tax experts and senior income-tax officials opine that there are roadblocks on the way to accessing accounts in LGT bank because of the limitation period that bars the I-T department to take up cases older than six years. Experts say the existing law on limitation needs to be altered. But to be effective, the law should be altered with retrospective effect.
