The government today said all the deposits by Indians in Swiss bank accounts cannot be termed black money and action will be taken against persons parking illegal funds overseas after Switzerland starts sharing real-time account details from January onwards.
Latest data from the Swiss National Bank showed that money parked by Indians in Swiss banks rose over 50 per cent to CHF 1.01 billion (Rs 7,000 crore) in 2017, reversing a three-year downward trend amid India's clampdown on suspected black money stashed by its citizens overseas.
The revelations created a furore in political circles with Opposition leaders taking a swipe at the Narendra Modi-led government over the rise in Indian money in Swiss banks.
The government also said all the money in Swiss banks should not be termed illegal as past investigations by tax department (CBDT) have shown that it includes funds held by persons of Indian origin who now hold foreign passport, monies belonging to non-resident Indians, as also funds belonging to resident Indians who have made legitimate investments abroad, including transfer of money under the Liberalised Remittance Scheme (LRS).
"A news item has appeared today indicating an increase of money by 'Indians' in the Swiss banking system. This has led to misinformed reaction in certain circles raising a query whether the government's anti-black money steps have yielded results," Jaitley said in a blog.
Noting that Switzerland in financial disclosures was always a reluctant state, Jaitley said the Alpine nation has amended its domestic laws involving all disclosures and entered into a treaty even with India and real-time flow of information with regard to Indians would be made.
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"The flow of information is starting in January, 2019. Any illegal depositor knows that it is a matter of months before his name becomes public and he will be subjected to the harsh penal provisions of the black money law in India," said the senior BJP leader.
Earlier in the day while talking to reporters, Finance Minister Piyush Goyal wondered how all of it can be assumed to be black money but said strong action would be taken against anyone found guilty of wrongdoing.
Referring to the rise in Swiss bank deposits by Indians, Goyal said, "The data that you alluded to will come to us, so how are you assuming that this is black money or this is illegal transaction?"
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