Objectives of BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 To deal with problem of black money tha...
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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