Black money, a topic which is always been talked about. This had always been center for discussion in general public, government etc. Bank balances of Indians in HSBC accounts majorly comprises of the black money. But no major actions had ever been taken. today the big question is that black money will ever convert to white?  

Black money refers to the income on which tax has been totally or partially evaded. It has a significant effect on all Indians as it impacts prices in the country as well as widen the gap between the rich and the poor. A report commissioned by the previous government and accessed by The Hindu, reportedly estimated the black economy could amount to almost 75 per cent of GDP, and includes cash in India and hidden abroad by Indians.

In 2011, the French government had provided a list of 628 Indians who figured on a list of HSBC account holders. Out of this, 200 were either non-residents or non- traceable or their balance was zero, leaving 428 cases of residents which were found actionable. For these 428 actionable cases the net amount of peak balance was about Rs.4500 crore.

In a press release dated 9^th February, 2015, it was cleared that among these cases, assessments were completed in 128 cases, involving more than 350 assessments. In the remaining cases assessment proceedings are at advance stage. Undisclosed income of about Rs.3150 crore was brought to tax on account of deposits made in unreported foreign bank accounts. Concealment penalty proceedings u/s 271(1)(c) have been initiated in almost all the cases.

The investigation carried on by The Indian Express has revealed 1,195 Indian HSBC clients roughly double the 628 names that French authorities gave to the Government in 2011. While some names are common to the old and new HSBC lists, both shall be carefully examined.

With total funds of $4.1 billion, Indians rank 16th on the new leaked HSBC list of Swiss bank account holders from over 200 countries. The list, made public by an international body of journalists ICIJ (International Consortium of Investigative Journalists), comprises over one lakh HSBC customers and their bank accounts with balances totaling over $100 billion. In terms of the number of account holders, India is at 18th place (1,668 account holders). There are 2,699 accounts linked to 1,688 Indians on the list. Out of these, 1,403 client accounts were opened between 1969 and 2006.

“Some new names have been revealed whose veracity would be checked by authorities,” said the Finance Minister, but cautioned that “names aren’t enough. Authentic evidence of the accounts is necessary.”

One issue that has, however, befuddled the CBDT is whether HSBC and its officials too should be brought under scrutiny.

In last year’s election campaign, Prime Minister Narendra Modi pledged to bring back crores worth of black money. However, like the earlier government, his administration has been criticized by the Supreme Court for the pace and depth of its effort.

The flow of black money into the system increases the supply of money and pushes up the prices of daily consumable products as well as assets such as real estate to higher levels. Thus, it is hoped that the government and the concerned officials put their effort to bring back money to the country.