Indian Revenue Issues Clarifications On The Black Money Act

• Black Money Act covers residents with undisclosed foreign assets and income and non-residents who have invested Indian-sourced income in offshore assets
• Compliance Scheme window open only till 30 September for declaring assets and until 31 December 2015 to pay tax at 30% and penalty at 30%.
• Revenue recommends disclosure of nil-value assets now under Compliance Scheme to avoid tax at 30% and penalty upto 90% if information on assets received after 30 September 2015.

Background

The Government had promised in the 2015 Budget that it would take swift action to bring back to India undisclosed offshore income and assets of residents that had escaped being taxed in India. This resulted in the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 (click here to access our Hotline on the Bill) being introduced on March 20, 2015.