Bollywood stars have definitely black money that is diverted to foreign banks as well as terrorist groups. 

Center Ordered a Probe. It has  ordered  the formation of Special agency to investigate Indians figured in the Panama papers. Let's wait for the findings of the Special Agency without Jumping to conclusions.

http://www.thehindu.com/todays-paper/centre-orders-probe-against-indians-linked-to-tax-havens/article8434401.ece

Actually I was reading that it may not be entirely illegal to invest the money you earn abroad in whatever form you want in shell companies abroad. It becomes illegal when you diver funds earned in India, just to evade paying taxes here.

usha manohar wrote:

Actually I was reading that it may not be entirely illegal to invest the money you earn abroad in whatever form you want in shell companies abroad. It becomes illegal when you diver funds earned in India, just to evade paying taxes here.

I agree. There is nothing illegal if your transactions are transparent and not intended to evade tax.  There is nothing wrong in foreign bank accounts when you often visit abroad, have business dealings abroad. You may remit money abroad and also receive from there. Many have their children and other relatives abroad. Actually concealing of income and assets for tax evasion is bad. 

I think this is just news that is given with an edge of sensationalism. Offshore companies are legal and are allowed in Dubai also. Though there are names of some 500 Indians , mark my words nothing will come out of this exercise. 

usha manohar wrote:

Actually I was reading that it may not be entirely illegal to invest the money you earn abroad in whatever form you want in shell companies abroad. It becomes illegal when you diver funds earned in India, just to evade paying taxes here.

That may be so, but from what I read in news, it seems that these people sent their money outside before it was made legal to send money outside, and that too without paying tax on that money, so it is still illegal.

Some of the Indians who figured in Panama Papers have claimed that their investments were legal. Construction major DLH , who was also enlisted in the Panama Papers, said that they had followed all applicable rules and regulations of Govt of India like RBI, FEMA and income tax to the last detail.

Kalyani Nandurkar wrote:

usha manohar wrote:

Actually I was reading that it may not be entirely illegal to invest the money you earn abroad in whatever form you want in shell companies abroad. It becomes illegal when you diver funds earned in India, just to evade paying taxes here.

That may be so, but from what I read in news, it seems that these people sent their money outside before it was made legal to send money outside, and that too without paying tax on that money, so it is still illegal.

Yes of course evading tax for money earned in India is definitely wrong and if that is the case I am sure it will be known after the investigation...In the mean time Amitabh Bachan has issued a statement saying that he is totally unaware of the 4 chipping and other companies where his name appears and that his name might have been used for publicity by someone .. I am sure that detail would come out after he investigation.

Kalyani Nandurkar wrote:

usha manohar wrote:

Actually I was reading that it may not be entirely illegal to invest the money you earn abroad in whatever form you want in shell companies abroad. It becomes illegal when you diver funds earned in India, just to evade paying taxes here.

That may be so, but from what I read in news, it seems that these people sent their money outside before it was made legal to send money outside, and that too without paying tax on that money, so it is still illegal.

Yes of course evading tax for money earned in India is definitely wrong and if that is the case I am sure it will be known after the investigation...In the mean time Amitabh Bachan has issued a statement saying that he is totally unaware of the 4 chipping and other companies where his name appears and that his name might have been used for publicity by someone .. I am sure that detail would come out after he investigation.