Indians are dumping black money in Swiss Banks. Yes, you heard me right. The amount of money our citizens have parked in Swiss Banks has risen 50% in the Year 2017. This is a whopping Rs 7,000 Crores. (This is 1.01 Billion Swiss Francs).
Your guess is as good as mine. This has to be black money hidden in Swiss Banks to escape the tax net of the Indian Government. This is tax evasion by dumping money in Swiss Banks, or is it?
What’s special about this news? The total money held by all foreign clients of Swiss banks went up by 3% to about 1.46 Trillion Swiss Francs or about Rs 100 Lakh Crores. This data was made available by the Swiss National Bank which is the Central Banking Authority of Switzerland.
So, Indians are dumping black money in Swiss Banks. Does this mean the Governments drive to catch black money is a flop? Let’s find out. Want to know more on Tax Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Take a look at this fact. The money stashed by Indians in Swiss Banks had fallen by 45% in the year 2016. This was the biggest ever yearly plunge to Rs 4,500 Crores. This was also the lowest level for Indian money in Swiss Banks ever since the Swiss National Bank made this data public in 1987.
Compare this with the total funds held by Indians in Swiss Banks a decade ago. This was a record high of Rs 23,000 Crores at the end of 2006. After this the brave citizens fearing regulatory crackdown cut down depositing black money in Swiss Banks.
Finance Minister Arun Jaitley said that not all deposits in Swiss Banks were black money. Not all the deposits made by Indian Citizens were illegal. (Arun Jaitley who was the Finance Minister is recovering from a kidney transplant operation and currently does not hold any portfolio).
Jaitley said that a news item has appeared today which indicates an increase of money by ‘Indians’ in the Swiss Banking System. This has led to a misinformed reaction in certain circles, raising a query whether the Governments anti-black money steps have yielded results. This is what Jaitley said in a blog.
Jaitley also said that as far as financial disclosures were concerned, Switzerland was a reluctant State. Switzerland has amended its domestic laws involving all disclosures. It has even entered into a treaty with India and real time flow of information would be made. This would happen sometime in January 2019.
This is what Arun Jaitley had to say on illegal deposits, Any illegal depositor knows that he will be caught in a matter of months as his name becomes public. He will be subjected to the harsh penal provisions of India’s black money laws. He also said that past investigations by the tax authorities have revealed that money in Swiss Banks includes those held by persons of Indian Origin who now hold a foreign passport and also money belonging to NRIs. There is also money belonging to resident Indians who have made legitimate investments abroad. This also includes transfer of money under the liberalized remittance scheme.
See Also: Arun Jaitley Speaks On Demonetization
If any money is kept by Resident Indians outside these categories, strict action will be taken.
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