Objectives of BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015
- To deal with problem of black money that is undisclosed foreign income and assets
- To lay down procedures to deal with such foreign income and assets (punishment and prevention of such income and asset outside India)
- To impose of tax on any undisclosed foreign income and assets and matters connected or incidental
Summary of BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015
- Act is effective from 1 July 2016 onwards (Assessment Year 2016-17) and extends to whole of India
- Applicable to all persons resident in India. In case of Individuals, it applies to ordinary resident under ITA
- Flat 30% tax rate (without surcharge and cess) on the value of total undisclosed foreign income and asset, Asset to be valued on Current FMV
- No exemption, deduction , set-off and carry forward of losses under ITA, no set off foreign tax credit will be allowed on UFIA
- Rs.10 Lakhs penalty for non-filing of return / not furnishing complete details of foreign assets.
- Additional 300% penalty for non-disclosure of foreign income or an asset.
- Prosecution for various violations (including abatement) including rigorous Imprisonment from 3 to 10 years.
- Tax and penalty proposed to be calculated at current value of assets as per rules instead of purchase value , Bank asset value is total of deposit
- One time compliance opportunity to be availed before 30 sep 2015, by paying 30% tax and equal penalty, no interest and prosecution
- Only bank account up to total balance of Rs 5 lac exempt
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