New Delhi: India's undeclared assets parked in overseas tax havens, ranges between $4 billion to $181 billion ( 27000 crore to Rs 12.05 lakh crore approx), according to a new black money estimate by senior economists of Bank of Italy.
Three economists – Valeria Pellegrini, Alessandra Sanelli, Enrico Tosti based their calculation on data from the International Monetary Fund and the Bank of International Settlements (BIS) from 2013.
India's share is the part of the $6-7 trillion of the total black money which has been stashed away in the world, a report by a leading daily has said.
According to the report, the economists used data from the International Monetary Fund and the Bank of International Settlements (BIS) to calculate the figure. Their calculation is based on the following two methods.
One of two methods assumes that the amount stashed away is the same as the country’s share in global GDP. India’s share was 2.5% in 2013, which amounts to about $152 -181 billion (Rs 8.9-10.5 lakh crore), based on investments in share and debt securities, and bank deposits.
In the second method, economists guessed that a country’s undeclared assets equalled its declared assets. India’s amounted to 0.07% of the total share, a valuation of $4-5 billion (Rs 33,000 crore).
However, this new estimate only considers money parked in shares, bank deposits or debt securities. It doesn't money stowed away in real estate, art or gold, overseas.
This black money is held in tax havens using shell companies to hide the original company's credentials, the report says.