Introduction
The Government of India enacted The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”) on May 26, 2015 to address the issue of undisclosed assets held abroad [For article on Black Money Act, please click on http://nrsadvisors.com/the-black-money-undisclosed-foreign-income-and-assets-and-imposition-of-tax-act-2015/] [For article on Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015, please click on http://nrsadvisors.com/black-money-undisclosed-foreign-income-and-assets-and-imposition-of-tax-rules-2015/]. It provides for separate taxation of income and assets acquired abroad from income not disclosed but chargeable to tax in India. To effectively deal with assets held abroad by persons resident in India in violation of the Foreign Exchange Management Act, 1999 (“FEMA”) for which declarations have been made and taxes and penalties have been paid under the provisions of the Black Money Act, RBI has issued the Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015 though Notification No. FEMA 348/2015-RB dated September 25, 2015 vide G.S.R. No. 738 (E) dated September 25, 2015. This article shall provide you with the key features of Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015.

Key features

1. No proceedings shall lie under FEMA against the declarant with respect to an asset held abroad for which taxes and penalties under the provisions of Black Money Act have been paid.
2. No permission under FEMA will be required to dispose of the asset so declared and bring back the proceeds to India through banking channels within 180 days from the date of declaration.
3. Holding of assets declared
   • In case the declarant wishes to hold the asset so declared, she/ he may apply to RBI within 180 days from the date of declaration.
   • Such applications will be dealt by the RBI as per extant regulations.
   • In case such permission is not granted, the asset will have to be disposed of within 180 days from the date of receipt of the communication from the RBI conveying refusal of permission or within such extended period as may be permitted by the RBI and proceeds shall be brought back to India immediately through the banking channel.