More steps soon to curb black money: Jaitley

Also asks tax officials to squeeze parallel economy through fair measures

Finance Minister Arun Jaitley on Monday, at an interaction with senior income tax officials, said more steps were on cards to curb black money.

While making it clear the government intended to crack down on black money-holders, Jaitley clarified an honest taxpayer would not be harassed.

"The parallel economy has to be squeezed ... and it has to be done in a fair, not a harsh, manner. In doing so, as senior officers, you have to maintain the highest standards of integrity," he said, addressing a conference of top officials of the Central Board of Direct Taxes.

The department would come out with a policy. Those having wealth outside were being given a compliance window on taxation, he said. "Those who have defied the system in the past and those who defy during the compliance period may have something to worry about. There are steps which have been announced and some may be announced in future with regard to squeezing the quantum of black money. If the base increases, collection increases and those who have to pay taxation are compelled to pay, the ability of the government to give concession in terms of rates to honest taxpayers also increases."

Jaitley emphasised the government was working on ways to improve the tax base as it would improve the government's ability to give concessions to the taxpayer.

The Lok Sabha has already cleared a Bill to curb black money. The Benami Transactions (Prohibition) Bill has been introduced in the Lok Sabha.

The government, the finance minister said, will over fours years reduce the corporate tax rate from 30 per cent to 25 per cent and also remove specific exemptions. The direct tax department was expected to come out with a list of exemptions.

For the current financial year, the minister said, direct tax collection was likely to improve by 14 to 15 per cent.