The government has given a two-month extension to the term of the Central Board of Direct Taxes (CBDT) committee that is examining ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.

The panel was originally given time till November to submit its recommendation. But, it was yet to finish consultations, as inputs from various quarters had not received as yet, senior CBDT official said on Thursday. We asked for time till January 31. (Finance minister) Pranab Mukherjee has approved it, he told Business Standard.

The official said the response from most of the industry chambers and professional bodies were still awaited. In a bid to get recommendations from the income tax department officials with expertise in this area, a nodal officer has been appointed to collate the inputs by mid-December, he added.
The government had constituted this committee in May this year under the CBDT chairman to examine ways to strengthen laws to curb the generation of black money.

Apart from the top CBDT officials, including two members of the board, the members of the committee comprise the director of the enforcement directorate, director-general of the directorate of revenue intelligence and director general (currency).

The panel is examining the existing legal and administrative framework to deal with the menace of generation of black money through illegal means such as declaring wealth generated illegally as national asset. It is also entrusted with the task of enacting and amending laws to confiscate and recover such assets. Further, the body will provide for exemplary punishment against its perpetrators.

The panel has asked for inputs from public and various stakeholders for preparing a report on the issue, which is at the centre stage.

Though it is expected that the recommendations of the panel will have its bearing on the government policies for curbing black money, the CBDT official say it will not be appropriate to link its recommendations with next budget.