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Income-tax department attaches Rs 2,300 crore of top 20 in HSBC black money list

The income-tax department has attached bank accounts and demat accounts worth Rs 2,300 crore of 20 individuals named in the HSBC black money list. This is the first big move to attach assets from money launderers who have stashed money abroad, as per the HSBC list.

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The income-tax department has attached bank accounts and demat accounts worth Rs 2,300 crore of 20 individuals named in the HSBC black money list. This is the first big move to attach assets from money launderers who have stashed money abroad, as per the HSBC list.

The move follows the order issued by the department to Central Depository Services Ltd (CDSL), a leading securities depository handling demat accounts, and some banks to attach the accounts.

The probe in the HSBC Geneva cases, with names of 628 entities, gathered momentum recently as a number of cases under this category are getting time-barred by Tuesday, which is the end of the financial year.

What does the I-T order say?

As per the order sent to CDSL, a copy of which dna is in possession of, "The demat accounts mentioned are hereby provisionally attached under Section 281(B) of the I-T Act 1961, in order to safeguard the interest of revenue." It said the shares held in these accounts must be prohibited from being transferred until further orders. However, credit of shares into the account may be allowed.

What does the Section 281(B) say?

The Section 281(B) is for provisional attachment to protect revenue in certain cases. It gives power to attach provisionally any property belonging to the assessee, with the order from the chief commissioner.

Is this part of tax evasion proceedings?

Yes. This is as part of tax evasion proceedings I-T had initiated against 60 account holders. A senior I-T official told dna that the proceedings for 2006-07 and 2007-08 cases are in progress. "Out of 427 actionable cases, we have completed an assessment of 350 foreign accounts," said an official.

How much funds stashed abroad?

The government had said in December 2014 that of the list of 628 Indians who could be hoarding black money overseas, 201 are either non-traceable or non-residents, while 289 have no balance left in their accounts. There are 427 actionable cases that collectively hold Rs 4,479 crore in bank accounts overseas, according to the official release, calculated at the dollar-rupee exchange of Rs 45 per dollar. Till now, the department has collected taxes or revenues worth Rs 3,150 crore.

Why do CAs representing NRIs oppose it?

The chartered accountants are claiming that by targeting NRIs, the Modi government is dampening investment climate. "It is against the fundamental rights. Hence we are planning to file a writ petition against the I-T department," said a CA, one of whose several clients received an I-T order.

Any action so far on the HSBC second list?

The HSBC second list list features names of 1,668 Indians while the number of actionable cases stands at 1,195 after taking into account duplication and other factors. Collectively, these accounts had a balance of Rs 25,420 crore till 2007.

Post second black money list, the taxman had conducted a "survey" operation in mid- February at the head office of HSBC Bank in connection with the black money probe against it and certain Indians who held accounts in its Geneva branch. The conclusion of the survey is still underway.

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