The government has set September 30, 2015, as the deadline for anyone to declare undisclosed assets located outside India. This declaration would be in compliance with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The government also set December 31 as the last date by which a person must pay the relevant tax and penalty in relation to undisclosed assets abroad.
In his Budget speech, Finance Minister Arun Jaitley had announced that a new, comprehensive law on black money would be enacted. The black money Bill was passed by Parliament during the Budget session itself. It received presidential approval and became a law on May 26, 2015.
To curb the creation of illicit assets abroad by Indians, the Act provides for separate taxation of undisclosed foreign income and assets. Violations come with stringent penalties and prosecution — including rigorous imprisonment of up to 10 years and a penalty equal to three times the quantum of the tax.
Compliance windowSince it is a new law, it provides for a compliance window — now September 30 — to allow people to declare any undisclosed assets or income from abroad.
Speaking in Parliament, Mr. Jaitley said the law would help bring back black money into the fold of the declared economy, improve tax collections and eventually lower tax rates.
