The Central Board of Direct Taxes (CBDT) has amended an instruction regarding prosecution provisions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Initially, an instruction from March 15, 2022, provided that prosecution would not be initiated for foreign bank accounts with an aggregate balance of up to ₹5 lakh. This was intended to protect individuals who may have unintentionally failed to report minor balances. Following the Finance (No.2) Act, 2024, the scope of this exemption was expanded. The act substituted the proviso to Sections 42 and 43 of the BMA, 2015, raising the threshold to ₹20 lakh for assets other than immovable property. As a result of this amendment, the CBDT has decided that prosecution proceedings under Sections 49 and 50 of the BMA, 2015, will no longer be initiated for assets (excluding immovable property) where the total value does not exceed ₹20 lakh at any point during the relevant previous year. This change is effective from the date the Finance (No.2) Act, 2024, came into force.
F. No. 285/46/2021-IT(Inv. V)/ 88
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(Investigation Division-V)
*******
New Delhi, Dated: 18 August, 2025
INSTRUCTION
Subject: Amendment of Instruction issued under Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,2015 (“BMA, 2015”) read with Section 119 of the Income tax Act,1961 regarding prosecution provisions under BMA, 2015-reg
Central Board of Direct taxes (Board’) had issued an Instruction, vide F.No.285/46/2021/IT (Inv.V)/645 dated 15.03.2022, clarifying that prosecution under section 49 and/or 50 of BMA, 2015 shall not be initiated in cases where penalty under section 42 and/or 43 of the BMA, 2015 is not imposed or imposable, in relation to assets covered under the proviso to aforesaid sections i.e, an asset, being one or more bank accounts having an aggregate balance which does not exceed a value equivalent to Rs.5 lakh at any time during the previous year. The instruction aimed to protect individuals holding foreign accounts with minor balances that might not have been reported due to oversight or ignorance, by providing that non-disclosure of such accounts will not attract penalty or prosecution.
2. The Finance (No.2) Act. 2024 has substituted the proviso to section 42 and 43 of the BMA, 2015 w.e.f 01.10.2024 and current proviso to section 42 and section 43 reads as under:
“Provided that this section shall not apply in respect of an asset or assets (other than immovable property) where the aggregate value of such asset or assets does not exceed twenty lakh rupees”.
3. The amendment has expanded the scope of assets, which are not amenable to penalty provisions under section 42 and/or 43 of the BMA, 2015, while the existing Instruction continues to provides protection from prosecution proceedings only in respect of assets, which are covered by the unamended provisions.
4. The matter has been examined in Central Board of Direct Taxes (‘Board’) and in order to provide relief from institution of prosecution proceedings under section 49 and/or 50 of BMA, 2015, in respect of asset(s) covered under the proviso to penalty provisions under section 42 and 43 of BMA, 2015, it has been decided to amend the Instruction dated 15.03.2022.
5. In view of the above and in exercise of powers under section 84 of the BMA, 2015 read with section 119 of the Income Tax Act,1961, the Board hereby amends Instruction dated 15.03.2022 and directs that prosecution proceedings under section 49 and/or 50 of BMA, 2015, would not be initiated in cases where penalty under section 42 and/or 43 of the BMA, 2015 is not imposed or imposable in relation to assets covered under the proviso to aforesaid sections i.e an asset or assets (other than immovable property). where the aggregate value of such asset or assets does not exceed a value equivalent to Rs.20 lakh at any time during the relevant previous year.
6. This shall come into effect from the date when the amendment to section 42 and 43 of BMA, 2015 became effective through Finance (No.2) Act. 2024.
(Ravi Verma)
Dy. Director of Income Tax
(Prosecution), CBDT, New Delhi.
Copy to:-
1. PS to FM/PS to MoS(F)
2. PS to Revenue Secretary
3. Chairman, CBDT & All Member, CBDT
4. All Pr. Chief Commissioners of Income Tax/All Director Generals of Income Tax (Investigation)/All Chief Commissioners of Income Tax(Central)/Director General of Income Tax (I&CI)
5. All Joint Secretaries/CsIT.
6. CBDT JCIT, Data Base Cell for uploading on irsofficersonline website.
(Ravi Verma)
Dy. Director of Income Tax
(Prosecution). CBDT. New Delhi
Jitendra Mehta