New Delhi, June 11: The government today said it was expanding the network of income tax overseas units (ITOUs) to collect information on black money stashed abroad by Indians on a real-time basis.
"After a comprehensive review of the existing network, steps are being taken to further augment the reach of the ITOUs in some more jurisdictions," finance minister Pranab Mukherjee said at an event of the income tax department here.
To facilitate real-time exchange of information on cross-border transactions, India had set up eight more ITOUs in Cyprus, France, Germany, the Netherlands, the UAE, the UK, the US and Japan.
The enlarged network of ITOUs along with the double taxation avoidance agreements and tax information exchange agreements will help India to receive valuable information in the future, Mukherjee said.
He said the government had commissioned a study on unaccounted income and wealth and it was likely to be completed in September.
Also, a report of a committee on strengthening of existing laws relating to black money is being examined by the government.
"I hope that these two studies will help in identifying the gaps in the present legislative and administrative framework and shall help us in checking the menace of black money through an effective policy response," said Mukherjee.
The direct tax code (DTC) bill will be introduced in Parliament in the forthcoming monsoon session and will be made effective from next fiscal, the finance minister said.
"I am hoping that DTC will be effective from April 1, 2013," Mukherjee said, adding that the time has come for the I-T department to prepare itself for the transition from the Income Tax Act, 1961, to the new direct tax regime.
On the direct tax collection target of Rs 5.70 lakh crore for the current fiscal, he said it was achievable.
"I do feel this target is moderate and can be achieved."