Training and Recruitment info - please reach 040- 4003 2244-47
+91 90 43 003 883 | support@rna-cs.com | Reach us

UNDISCLOSED FOREIGN INCOME AND ASSETS (IMPOSITION OF TAX) BILL, 2015

May 6, 2015

Warning: count(): Parameter must be an array or an object that implements Countable in /home/rnacs520/public_html/wp-content/themes/vision_wp/template_inc/loop-index.php on line 217
Introduction: The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 (also known as the “Black Money Bill”) is proposed to be tabled before Lok Sabha next week which was introduced earlier in the parliament in the month March, 2015. The objective of the bill is to make provisions for undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide an imposition of tax on any such undisclosed foreign income and assets held outside India. On introducing the Black Money Bill in both houses, the same Bill goes for president ascent, then the draft Bill comes into an effect as " Undisclosed Foreign Income and Assets (Imposition of Tax) Act, 2015 (“the Act”)". Amendment of Prevention of Money Laundering Act (PMLA), 2002: The Black Money Bill also proposes to amend PMLA, 2002 to include offence of tax evasion under the proposed legislation as a scheduled offence under PMLA. Salient features of the Bill: The Act will apply to all persons resident other than not ordinarily resident in India and it extends to the whole of India. Provisions of the Act will apply to both undisclosed foreign income and assets (including financial interest in any entity). 1. Rate of tax: Undisclosed foreign income or assets shall be taxed at a flat rate of 30%. 2. Computation of total undisclosed foreign income and asset No deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee, whether or not it is allowable in accordance with the provisions of the Income-tax Ac. 3. Tax Authorities Income-tax authorities specified in section 116 of the Income-tax Act shall be the tax authorities for the purposes of the Act. 4. Penalties: Non compliance of the provision of the Act will attract heavy penalties.
  • Penalty in relation to undisclosed foreign income and asset. the Assesse will liable by way of penalty a sum equal to three times the tax computed under the Act in addition to tax payable by him.
  • Penalty for failure to furnish return in relation to foreign income and assets: the assessee shall be liable for penalty a sum of Rs. 10 Lacs.
  • Penalty for failure to furnish return of income, an information or furnish inaccurate particulars about an asset (including financial interest in any entity) located outside India: the assessee shall be liable for penalty a sum of Rs. 10 Lacs.
5. Offences and Prosecutions:
  • Punishment for failure to furnish return in relation to foreign income and asset: the assessee shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine
  • Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India: the assessee: shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
  • Punishment for willful attempt to evade tax: the assessee shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine
  • Punishment for false statement in verification: the assessee shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
6. Declaration of undisclosed foreign asset: The Act also provides flexibility to resident Indian to declare any undisclosed asset located outside India and acquired from income chargeable to tax under the Income-tax Act for any assessment year prior to the assessment year beginning on 1st day of April, 2016. The declaration shall be made on or after the date of commencement of this Act but on or before a date to be notified by the Central Government in the Official Gazette. The declared income will be taxable at a flat rate of 30% with an addition penalty at the rate of 100% of such tax.  
******************************************

Disclaimer: The entire contents of this document have been developed on the basis of relevant information and are purely the views of the authors. Though the authors have made utmost efforts to provide authentic information however, the authors and the company expressly disclaim all and any liability to any person who has read this document, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this document.

 
  • By admin  gg 0 Comments   

    0 Comments

    Leave a Reply

    Your email address will not be published. Required fields are marked *