CA Sahil Garg
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 is passed in Lok Sabha on 11th of May 2015 and in Rajya Sabha on 13th May 2015. It states that Undisclosed Foreign Income and Assets shall be taxed separately under this Act and therefore, such income shall not become part of the income under Income Tax Act, 1961.
The clear intention of the Government behind this is to curb the menace of black money.
Some Key Highlights of this Bill:
1. It will be applicable on Ordinary Resident (and every person who will deemed to be assessee in default under the said act) from 1st April 2016.
2. Flat Rate of Tax @ 30% (along with penalty which is 3 times of tax) shall be charged on the total of Undisclosed Foreign Income and Value of Undisclosed Foreign Assets.
3. Undisclosed Foreign Income shall be amount of income from a source abroad, which is required to but has not been disclosed by the assessee as per the provisions of the Income Tax Act.
4. Undisclosed Foreign Asset shall be the FAIR MARKET VALUE of the undisclosed asset located abroad. Whose year value shall be considered, it depends when Assessing Officer comes to know about the undisclosed asset. In which he comes to know, that year value will be considered. However, if assessee proves that the undisclosed asset was purchased FULLY/PARTIALLY out of income which has been taxed under the Income Tax Act or this Act, then such amount shall be deducted while calculating the Value of Undisclosed Foreign Asset.
5. No deduction of any expenses, no exemption and no set off of any loss shall be allowed.
6. One Time Chance shall be given to all assesses on 01 April 2016, to make a declaration, upto a date to be notified, about any undisclosed foreign income and assets. In such case, only 1 time of tax penalty shall be levied. Tax and Penalty must be paid before making declaration.
Download The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 as passed in Lok Sabha on 11.05.2015
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This act needs to come to empower India …….
Mr. Agarwal, if assessee make a declaration, then penalty will be 1 time of tax, otherwise 3 times of tax.
If tax & penalty shall be paid before making declaration then what is benefit of making deceleration. How much penalty shall be levied 1 time or 3 Times.
A good tax reform by the goverment