Highlights of Black Money Act, 2015

Komal Tyagi

⇒ It extends to whole of India & shall come into force on the 1^st day of April 2016.

⇒ Basis of charger – There shall be charged on every assessee for every assessment year commencing on or after 1^st day of April’16, a tax in respect of his total undisclosed foreign income & assets of the previous year @ 30%.

⇒ Value of undisclosed assets- FMV of an assets ( determined in manners prescribed)

⇒ No deduction shall be allowed of any expenditure.

⇒ Tax authority shall same as specified under Income Tax Act’ 1961.

⇒ The powers regarding discovery & production of evidence for the purpose of this act, the tax authority have same powers as are vested in a court under CCP (code of civil procedure).

⇒ For assessment– The AO may on receipt of information serve a notice requiring documents or evidences. After considering all documents or evidence, produced during proceeding, AO shall by an order in writing, assess the undisclosed foreign income and asset and determine the sum payable.

⇒  Time limit for completion of assessment– Order must be issued before the expiry of two years from the end of financial year in which notice was issued.

⇒ Rectification of mistake & time limit– Tax authority may amend order to rectify the mistake apparent from record with in four year from the end of financial year in the order sought to amend was passed.

⇒ Direct assessment or rocevery is not barred in this act.

⇒ The assessee, if not satisfied from the AO order, may file an appeal to the Commissioner (Appeals) within 30 days.

⇒  The Commissioner (Appeals) shall hear and determine the appeal, and pass an order after giving an opportunity of being heard to the assessee.

⇒  An assessee aggrieved by the order passed by the commissioner (A), principal commissioner or the commissioner may appeal to the Appellate Tribunal against such order within 60 days from the date of order passed.

⇒ High court & Supreme courts remedies are also available.

⇒ Recovery of Tax dues by Tax authorities- Amount specified in notice of demand shall be paid within 30 days of service of notice. The AO may reduce the time limit of 30 days after obtaining previous approval of joint commissioner if it is detrimental to the tax revenue.

⇒ If the assessee shall not pay the tax arrears with in prescribed time or extended time, then AO may pass a certificate to recovers the tax to tax recovery officer.

⇒ Mode of recovery of tax dues– The AO or Tax Recovery officer may require the employer of the assessee to deduct from any payment to the assessee such amount as is sufficient to meet the tax arrears.

⇒ The AO or Tax Recovery officer may require any debtor of the assessee to pay such amount, not exceeding the debt.

⇒ Tax recovery officer by whom recovery of tax dues is to be effected shall be the officer with in whose jurisdiction- the assessee carries on his business, the principal place of business is situated, the assessee resides, any movable or immovable property is situated OR who has assigned jurisdiction.

⇒ Recovery of tax arrears in case of company in liquidation- The liquidator shall inform the AO within 30 days of his becoming liquidator.

⇒ Liability of manager of company- Every person being a manger at any time during the financial year shall be jointly & severally liable for the payment of the amount due under this Act.

⇒ If there is default in furnishing of return of income (Foreign undisclosed income) & nonpayment of tax or deferment of advance tax, Interest shall be payable under section 234A /234B/ 234C of income tax act, 1961.

⇒ Penalty in relation to undisclosed foreign income or assets shall be equal to 3 times of the tax computed.

⇒ Chapter V of this Act contains provisions of offence & prosecutions. The provisions of this chapter shall be in addition to, and not in derogation of, the provision of any other law providing for prosecutions for offences.

⇒ Chapter VI of this Act contains tax compliance for undisclosed foreign Income and assets.

⇒ Chapter VII of this Act contains general provisions for e.g. central govt. power to make agreement with foreign countries or specified territories., service of notice generally may be made by delivering or transmitting a copy of to the person named by post or courier or as such manner provided under the code of Civil procedure or in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 or by FAX or by mail., Authentication of notices and other documents-a notice which is required to be served upon a person shall be duly authenticated if the name and office of a designated tax authority is printed, stamped or otherwise written off.