Articles on "Black Money Act"


Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015

Date posted: Saturday 25 July 2015
Laws:

Last week, we covered the summary of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”). The Black Money Act is applicable to Residents other than not ordinarily resident in India who have undisclosed foreign income/assets. The Central Board of Direct Taxes (“CBDT”) has, on 2nd July, 2015 notified the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 (“Black Money Rules”) for calculating foreign assets. The value of the foreign assets, including immovable property, jewellery and precious stones, archaeological collections and paintings, shares and securities and shares in unlisted firms abroad will be calculated at the fair market value. The rules contain seven forms including those which have to be filled by persons, while declaring the undisclosed assets outside the country. This article will provide you with an overview of these rules, which includes the method of calculation of fair market value of foreign assets.


The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

Date posted: Saturday 18 July 2015
Laws:

Do you possess Black Money? Grab your chance to come clean! The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”), has been notified on 26th May, 2015, with stringent provisions on tax, interest, penalty and prosecution for having illegal funds stashed abroad. The government has, however, offered a one-time opportunity to individuals to declare their undisclosed foreign assets and incomes and avoid penal action. For those wanting to come clean, there would be a compliance window in two parts – to declare assets and to pay 30% tax and 30% penalty. Once the compliance window closes, anyone found having undeclared overseas wealth would be required to pay 30% tax, 90% penalty, resulting into an outflow of 120% of the asset value and face criminal prosecution, which may result into a rigorous imprisonment of 3 years to 10 years. This article will provide you with an overview of the key provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.