NEW DELHI (Mar 17): India's cabinet approved a bill on Tuesday that would introduce a 10-year jail term for people convicted of illicitly stashing wealth abroad, a senior official said.

The move is viewed as a first step towards empowering tax authorities and meeting the commitment of Prime Minister Narendra Modi's 10-month-old government to enact a new law on 'black money', a key political challenge.

Finance Minister Arun Jaitley announced the pledge as part of reform measures in last month's budget.

"The bill has a provision of 10-year imprisonment for concealment of overseas assets," the official said after a cabinet meeting, requesting not to be named. It is expected to be introduced during the current session of parliament.