How provision of Black Money bill impact your tax assessment
The government has been grappling with the undesirable consequences that black money has on the economic development of the country. The introduction of The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill 2015, reiterates the commitment of the government towards a step closer in making law on black money. Here an attempt is made to explain the provision of bill and the manner which same will impact assessment of individual.
The bill if enacted shall come into force from 1 April 2016, i.e., from assessment year 2016-17.
Who will be impacted by such enactment, i.e., assessee covered
The bill is applicable to persons who are resident and ordinary resident in India. Thus, non resident are not get impacted by such enactment.
Basis of charge
The basis of charge can be explained as below:
Penalties & Prosecution
Window to existing defaulters
An existing defaulter may file a declaration before the specified tax authority within a specified period followed by payment of tax at the rate of 30% and an equal amount by way of penalty. It is the best chance to get tax compliant before the stringent provision comes into force.
Thus, in view of above, one can conclude that how government is working in the direction of plugging out black money from outside India. Hence, it is advisable to give full accurate particulars of your income and assets outside India in coming year. In our upcoming blog we will highlight few more aspects of this bill.