The Union Budget has made a quantum jump in allocation for setting up eight new Income Tax overseas offices in countries like the US and the UK in its efforts to combat the problem of black money stashed abroad.
While the initial budgetary allocation for these units was Rs 2.41 crore in the current fiscal, it has been raised to Rs 18.20 crore in the coming year.
The latest budgetary allocation by Finance Minister Pranab Mukherjee has come at a time when the eight units are scheduled to operationalise within the current fiscal, and the job is being accorded the highest priority by the Finance Ministry.
While the Central Board of Direct Taxes (CBDT) has finalised the names of the Indian Revenue Service (Income Tax) officials who will man these units, the final deployment will soon take place in coordination with the Ministry of External Affairs (MEA).
The proposed eight units will be in the United States of America (USA), United Kingdom (UK), the Netherlands, Cyprus, Germany, France, Japan and United Arab Emirates (UAE). Two such units in Singapore and Mauritius are already operational since 2010.
The units will be manned by a senior I-T officer adept in handling tax evasion cases and international tax treaties and will also help the department liaise with authorities of these countries in various high-profile cases which the I-T is currently investigating.