Union Government notified dates for Compliance Window under Black Money Act

Union Government on 1 July 2015 notified dates for compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act’).

It gave three months time (till 30 September 2015) for people to declare their undisclosed foreign income and assets to escape prosecution under the new Black Money Law.

The notice says that those making the disclosure during this period will have further three-month time till 31 December 2015 to pay the taxes and the penalty on their foreign income and assets.

As per the notice, people availing the one-time compliance window would be required to pay a tax of 30 percent and a penalty of a similar amount.

Under the Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, which will come into force from April 2015, the penalty would be much higher at 90 percent, in addition to the 30 percent tax on undisclosed foreign assets.

The new law was passed by Parliament in May 2015 and was notified on 26 May 2015. The Act provides for separate taxation of undisclosed foreign income and assets. Stringent penalties and prosecution, including rigorous imprisonment up to 10 years and penalty equal to three times of the tax have been prescribed for violation.