Fin Min cracks the whip on black money! Disclose your foreign income and assets or face consequences

Getting serious about the issue of black money, the NaMo government today gave three months time for people to declare their undisclosed foreign income and assets. According to a report by ET, the deadline to make the disclosure ends on September 30 and defaulters will be prosecuted under the new black money law, while tax and penalty on such funds can be paid till December 31.

The report also stated that those availing ‘one-time 'compliance window' will have to pay a tax of 30% and a penalty of a similar amount.

"The Central Government has notified the September 30, 2015, as the date on or before which a person may make a declaration in respect of an undisclosed asset located outside India under the compliance provisions of this Act,” said the Ministry of Finance in a statement.

It should be noted that under the new black money law, which will come into force from April 2016, the penalty would be much higher at 90% along with an additional 30% tax on undisclosed foreign assets. Those charged will also face criminal prosecution with a jail term of up to ten years.

"The last date by which a person must pay the tax and penalty in respect of the undisclosed foreign assets so declared shall be the December 31, 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," it added.