Millennium Post

Black money: Lower penalty, no prosecution under short window

The penalty in both cases would be over and above a 30 per cent tax on undisclosed assets. Those disclosing their assets during this window, duration of which would be notified later, would also be spared of prosecution under stringent provisions of the new law that would have up to 10 years’ rigorous imprisonment.

Releasing details of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, introduced in Lok Sabha on Friday, the Finance Ministry said the Bill provides “a one-time compliance opportunity for a limited period to people who have any undisclosed foreign assets which have hitherto not been disclosed for the purposes of income tax.

“Such persons may file a declaration before the specified tax authority within a specified period,
followed by payment of tax at the rate of 30 per cent and an equal amount by way of penalty.
Outside this window, a tax would be levied at a flat rate of 30 per cent, while the penalty would be 90 per cent of the undisclosed income.

“It is to be noted that this is not an amnesty scheme as no immunity from penalty is being offered. It is merely an opportunity for persons to come clean and become compliant before the stringent provisions of the new Act come into force.”

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