Black money holders get time till 30 September to comply

The government has opened a compliance window under Black Money Act, which will be available till 30 September 2015, before which a person may make a declaration in respect of an undisclosed asset located outside India.

Under the compliance provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, those who declare undisclosed foreign assets must also pay the tax and penalty for such declared assets by 31 December 2015.

The government has separately notified detailed features of the compliance window.

This is in tune with the announcement made by the union finance minister Arun Jaitley in his budget speech this year, that a comprehensive new law to deal with black money stashed away abroad would be enacted.

The bill to enact the proposed new law was passed by the Parliament in its budget session. The bill received Presidential assent and became law on 26 May 2015.

The Act provides for separate taxation of undisclosed foreign income and assets.

Stringent penalties and prosecution, including rigorous imprisonment up to 10 years and penalty equal to three times of the unpaid tax amount have been prescribed for violation. 

The Act also provides a compliance window for a limited period to those who have foreign assets which they have not disclosed for the purposes of Income-tax payment so far.