New Delhi, May 25 (PTI): Government today asked income tax department to take steps to unearth domestic black money while keeping a close watch on ponzi schemes, bogus IPOs and other such illegal means of raising money.

The government is determined to fight menace of black money both abroad and inside the country, Revenue Secretary Shaktikanta Das said at the annual conference of Principal Chief Commissioners of Income Tax, Principal Director Generals of Income Tax, Chief Commissioners of Income Tax and Director Generals of Income Tax here.

Parliament recently passed the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015, to deal with black money stashed abroad.

"Our goal for all officers is to give equal emphasis on domestic black money. A number of initiatives have been taken but having said that there are three or fours areas that I would like to mention.

"One, that we need to be very alert if there are ponzi schemes and if there are aggressive schemes which are unregulated and result in cheating the poor citizens of the country," Das said.

Officers need to be very alert and if there are such schemes coming up then it needs to be referred to the respective regulatory agencies whether at state level or Reserve Bank level apart from taking deterrent action or taking effective action from tax point of view, he added.

The second area, he said, where the Department has initiated lot of action is with regard to bogus IPOs and accommodation entry cases. "We have been able to identify a large number of cases. All these cases need to be taken to a logical conclusion," he said.

With regard to the HSBC list, Das said, "All the assessment which require to be completed before March 31, they have been completed.Thanks to international cooperation and thanks to the initiative taken by the government in the recent months we were able to get a lot of other additional information from other countries and foreign jurisdiction." This has opened up new areas of investigation, he said, adding, "all these cases, all these areas I would emphasise that investigation need to be completed expeditiously and finally."

Das also asked tax officials to effectively share information with Central Economic Intelligence Bureau to check tax evasion and fraud.

With regard to direct tax collection target, Das said, "The target of 7.98 lakh crore, that has been set in 2015-16, is very much achievable, it is a very realistic target, aligned with the kind of GDP growth which has been forecast in the economic survey and it is also based on our internal analysis and past and historical trends." The fiscal deficit target is very sacrosanct, he said, adding that the target of 3.9% will be achievable if the department is able to deliver on the targets.

On alignment of corporate tax with global rate of 25%, he said, "the CBDT is working on a strategy paper for elimination of exemptions (on corporate tax) ... we should announce the roadmap in the course of this year to eliminate the exemptions in a phased manner...exemptions are the root cause, in fact they are the main reasons for majority of tax disputes."

More steps on curbing black money on anvil: Finance Minister Arun Jaitley

Finance Minister Arun Jaitley today hinted at coming out with more steps on squeezing black money but assured honest taxpayers that they need not fear the new law to unearth unaccounted wealth stashed abroad.

He also said that if the tax base and collection rise, then the government's ability to give concessions in terms of rates to honest taxpayers will also go up.

"The parallel economy has to be squeezed...and (it) has to be done in a very fair manner, not in a harsh manner. In doing so, as senior officers you have to maintain the highest standards of integrity," he said addressing a conference of top officials of the Central Board of Direct Taxes (CBDT).

On the new black money law which seeks to bring back the illicit funds stashed abroad, Jaitley said, "No honest taxpayer has anything to fear. It is targeted only against those who have stashed assets abroad."

He said the department will come out with its policy that those who have wealth outside were being given a compliance window on taxation which have been imposed on the assets outside.

"It is only those who have defied the system in the past and those who defy during compliance period also may have something to worry about.

"There are steps which have been announced and some may be announced in future with regard to squeezing the quantum of black money. If the base increases, collection increases and those who have to pay taxation are compelled to pay it. The ability of government to give concession in terms of rates to honest tax payers also increases," Jaitley said.

He also said that improvement in tax collection will increase the ability of the government to step up spending on social and infrastructure projects.

The minister further told the tax officers, "Every well meaning advisor will tell you, tax base has to be expanded.

Black money has to be squeezed out and at the same time if you take steps to do that, you have to listen to the taunt of draconian steps which are being taken."

The government, the minister said, has taken a host of measures to curb the menace of black money. These include passage of the black money law by Parliament and introduction of Benami Transactions (Prohibition) bill to deal with the unaccounted domestic wealth.