Govt all set to go ahead with its war against black money

Unfolding its determined war against black money, the government on Monday created an entirely new Directorate of Income Tax (Criminal Investigation) with its sub-offices in 8 cities under the Central Board of Direct Taxes to tackle the tax evasion and investments of illicit funds in various sectors.

A Finance Ministry notification setting up the new directorate known as DCI says it will handle criminal matters with financial implication punishable as an offence under the Income Tax and Wealth Tax Act. So far, this task was performed as one of its numerous responsibilities by the Income Tax Department.

Formation of a separate directorate is part of a 5-fold strategy adopted by the government to tackle the menace of illicit funds that are known loosely as black money. This strategy includes joining global crusade against black money, creating an appropriate legislative framework, setting up institutions for dealing with Illicit Funds, developing systems for implementation and imparting special skills to staff for effective action.

The new directorate is the third major step the government announced in three consecutive days, starting with creation of a high- powered panel headed by the CBDT chairman on Saturday to recommend within six months how to curb generation of black money and engaging three top class institutions to assess the real worth of the black money.