Black money: Short compliance window to declare overseas assets likely
The government is likely to offer a "short" compliance window, which could be as little as two months, for those holding black money or undeclared assets abroad to make voluntary disclosure or face stiff penalty and criminal prosecution.business Updated: Jun 22, 2015 19:02 IST
The government is likely to offer a "short" compliance window, which could be as little as two months, for those holding black money or undeclared assets abroad to make voluntary disclosure or face stiff penalty and criminal prosecution.
"The compliance window to declare overseas black money or unreported income is expected to be a short and quick affair. A two-month time period is being thought to be enough for the person wanting to avail the one-time facility and also for the taxman to process it," sources said.
They said the window would be kept "as short as possible" as a 'trend analysis' has shown that the target base for the special exercise would not be very large.
Maintaining that the window could be notified by the end of this month or early July, sources said,"A team of Central Board of Direct Taxes (CBDT) is working on the draft of the proposed compliance window. After vetting by the Department of Revenue it will be sent to the Finance Minister's office for final approval."
It is understood that CBDT is in touch with the Special Investigation Team (SIT) on black money to decide if those being probed by the Income Tax Department or other enforcement agencies or against whom notices have been issued based on evidence would be eligible for availing the compliance window facility.
The new anti-black money law-- Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 takes effect from April 1, 2016.
Finance Minister Arun Jaitley had told the Lok Sabha that there would be a short compliance window for people having undisclosed income abroad to come clean by paying 30% tax and 30% penalty.
Once the compliance window closes, anyone found having undeclared overseas wealth would be required to pay 30% tax, 90% penalty and face criminal prosecution.
The new law would not cover those having amounts to the tune of Rs 5 lakh in bank accounts and will deal with foreign assets alone.