BLACK MONEY & IMPOSITION OF TAX ACT

BLACK MONEY & IMPOSITION OF TAX ACT

Chargeability :- 

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 had been introduced in the Parliament on 20-03-2015 which thereafter received President’s assent on 26th May 2015 and notified in the month of July 2015.

This act define a assessee defination 

• Assessee :- Every Person who is a Resident ( other than not ordinary resident ).

• Not to apply On NR.

• Includes every person who is deemed to be an assessee in default under this Act.

NOTE :-

1. Tax Rate :- @30% on Gross of Undisclosed foreign Income & undisclosed foreign Assets in the Previous Year.

* PREVIOUS YEAR CONCEPTS UNDERSTAND THROUGH DIAGRAM:-

PREVIOUS YEAR -CHART

Define :- sec 2(11) Undisclosed assets 

• Undisclosed Assets ( located outside india )  shall be charged to tax in the P.Y. in which comes to notice to A.O. on the value as per sec 3(2) & as per rule 3.

• Assets held by the assesee ( including financial interest ) 

• In his name 

• He is a beneficial owner and no explanation or inaccurate explanation about the source / investment.

Sec 4:- scope of undisclosed foreign income & foreign assets

Source of income which is located outside India and not shown in return of income.               

                             ‘OR’

Return of Income Not Furnished 

Note :- No Double Taxation- if tax & penalty paid under this Act , No income or/& assets shall be considered under this Income tax Act .

Sec 5 :- computation of total undisclosed foreign assets /income 

In this Act Provide  :- No any deduction , not any set-off to be allowed. Gross amount / or undisclosed income to be tax in this act then again not to be tax in income tax act. 

 

Relevant points 

• Foreign Assets shall be taxed in the year in which they come to notice of the assessing officers.

• Rate of tax under B.M Act is flat rate 30%, no cess , no surcharge is applicable.

• Not set-off & c/f are allowed.

• No deduction or exemption shall be allowed.

• Valuation Date :- 1st day of the P.Y.

For example :- A.O. noticed a assets of Mr.x at 26-12-2018 value on 26-12-2018 is $20 lacs.For the purpose of Valuation Date shall be as on 1-4-2018.

Penalties & prosecutions 

PENALTIES & PROSECUTIONS-CHART