BLACK MONEY BILL
1) Definition of Black Money
Black
money is unaccounted money, illegally acquired wealth or other assets made
through accepting bribery or other morally deprived acts and as such is not taxed.
2) Black Money Bill
THE UNDISCLOSED FOREIGN INCOME AND ASSETS
(IMPOSITION OF TAX) BILL, 2015 also known as Black money Bill which shall come
into force on the 1st Aril, 2016 for those who stashed away black money
in Foreign Accounts.
3)Applicability
The persons who are resident in India under
the Income Tax Act, 1961 other than the persons who are not ordinarily resident
in India.
4)Taxation
Rate
Undisclosed foreign Income shall be taxed at
30%.
5)
Basis of Charge
A tax shall be charged on total undisclosed
income and asset located outside India which has not been disclosed in return
of income.
6)
Penalty
The penalty of non disclosure shall be equal to
3 times of tax payable thereon.
Other penalties:-
a) Failure to
furnish return in respect of Foreign income or assets- Rs.10.00 Lacs
(However,
it is not applicable in case of an asset, being one or more bank accounts
having an aggregate balance which does not exceed a value equivalent to five
hundred thousand rupees at any time during the previous year)
b) Failure
to furnish any details or furnishing inaccurate details regarding assets
located outside India- Rs.10.00 Lacs
(However,
it is not applicable in case of an asset, being one or more bank accounts
having an aggregate balance which does not exceed a value equivalent to five
hundred thousand rupees at any time during the previous year)
c) Default
in payment of tax Arrear- Amount of Tax Arrear
d) Default
in answering any question put to him by a tax authority, sign any statement
made by him in the course of any proceedings which a tax authority may legally
require him to sign, attend or produce books of account or documents -Not less than fifty thousand rupees but which may
extend to two lakh rupees.
7) Prosecution-
a) Failure to furnish in due time the return
of income in relation to foreign income and assets- 6 Months to 7 Years.
b) Failure to furnish in return any
information related to assets located outside India- 6 Months to 7 Years.
c) Willful attempt to evade tax, penalty or
interest- 3 Years to 10 Years.
d) Willful attempt to evade payment of tax,
interest or penalty- 3 Months to 3 Years.
e) False Statement in verification- 6 Months
to 7 years.
f) Any abatement of any other person to file
false return or false account or false statement- 6 Months to 7 years.
8) Other safeguards and internal control mechanisms
a) One time compliance opportunity – The Bill also provides a onetime compliance opportunity for a limited period to persons who have any undisclosed foreign assets which have hitherto not been disclosed for the purposes of Income-tax. Such persons may file a declaration before the specified tax authority within a specified period, followed by payment of tax at the rate of 30 percent and an equal amount by way of penalty. Such persons will not be prosecuted under the stringent provisions of the new Act. It is to be noted that this is not an amnesty scheme as no immunity from penalty is being offered. It is merely an opportunity for persons to come clean and become compliant before the stringent provisions of the new Act come into force.
b) Amendment of PMLA – The Bill also proposes to amend Prevention of Money Laundering Act (PMLA), 2002 to include offence of tax evasion under the proposed legislation as a scheduled offence under PMLA. Thus, in keeping with the commitment of the government for focussed action on black money front, an unprecedented and multi‐pronged attack has been launched to root out the menace of black money. The Government is confident that this new law will act as a strong deterrent and curb the menace of black money stashed abroad by Indians. Disclosure of foreign assets and liabilities has already been introduced in Income Tax Returns for all assessee by Income Tax department which needs to be carefully filled and filed.
BY CA Shivani Agarwal
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