Union Government opens compliance window for black money disclosure
Union Government has notified the compliance window for black money disclosure under the Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015.
The notified compliance window makes it mandatory for people to disclose their foreign income and assets till 30th September 2015. Those who make the disclosure during this notified period will have further 3 months’ time i.e. till 31st December 2015 to pay the taxes and the penalty on their foreign income and assets.
People availing this one-time compliance window will be required to pay a tax of 30 per cent and a penalty of a similar amount.
The Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015 was passed by the parliament in May 2015.
This act which will come into force from April 2016 and has provision of stringent penalty which includes much higher at 90 per cent in addition to the 30 per cent tax on undisclosed foreign assets.
The Act also provides provisions for separate taxation of undisclosed foreign income and assets along with stringent penalties and prosecution, including rigorous imprisonment up to 10 years and penalty.