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Tightening noose on <a href="http://www.businessinsider.in/searchresult.cms?query=tax+evaders">tax evaders</a>, the government and the <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+department+">Income Tax department</a> will keep a closer eye on those with foreign assets and income, which even includes the negligible interest earned on bank deposits, small earnings while on a short trip abroad or even an online project that paid you in foreign currency. 
 
The government is very concerned about uncovering <a href="http://www.businessinsider.in/searchresult.cms?query=black+money+">black money</a> this year, therefore a minor mistake or a miss can amount to concealment of information, call for scrutiny and land you in big trouble. 
 
What to do then? It is very simple. Unless you are an <a href="http://www.businessinsider.in/searchresult.cms?query=non-resident+Indian+%28NRI%29">non-resident Indian (NRI),</a> all your income earned, including the ones earned outside India, has to be reported in your <keyword id="6354751" type="COMPANY" weightage="80" keywordseo="Income-Tax">income tax</keyword> return and is taxable according to the Indian I-T Act, 1961. 
 There is a common misconception that if the income has been taxed abroad, it does not have to be declared in India. “However, rule is all the foreign incomes, whether taxed outside India or not, will have to be declared by assessees if they are Indian residents," says <keyword id="3020242" type="UNKNOWN" weightage="60" keywordseo="Anand-Satyapanthi">Anand Satyapanthi</keyword>, co-founder <keyword id="3020243" type="UNKNOWN" weightage="60" keywordseo="Quicko">Quicko</keyword>.com, an online tax filing website. 
 
Some taxpayers are also unsure whether they must disclose bank accounts held abroad where low interest is being earned. The new ITR-2 however requires you to declare all <a href="http://www.businessinsider.in/searchresult.cms?query=foreign+bank+account%27s+holding+">foreign bank account's holding</a> including those where they are beneficiaries along with details such as account opening date, interest accrued during the year and schedule and fields number under which the same income is reported. 
 
"In cases of joint holdings, the spouse too needs to report the bank details and file the return in in India even though he or she may not have taxable income," says Kuldip Kumar, Leader (Personal Tax), PwC. 
 
Declaring and claiming deductions: Declaration of foreign income is made under the same heads as income earned in India--salary, property, business and professional income, capital gains and other sources. You merely have to convert it in terms of rupees and add it to the incomes under these heads. 
 "Conversation into rupees can be done using the SBI telegraphic transfer buying rate (TTBR) of the last day of the month before the month in which income is due. So, for converting salary earned in June 2014, use the TTBR of the relevant currency for May 2014," says <keyword id="905877" type="UNKNOWN" weightage="60" keywordseo="Archit-Gupta">Archit Gupta</keyword>, co-founder and CEO, <keyword id="2763190" type="UNKNOWN" weightage="60" keywordseo="Cleartax">Cleartax</keyword>.in. 
 
Relief under DTAA: If a tax has already been deducted on your foreign income, you are allowed to take credit of such taxes under the DTAA treaty . First step is to obtain a TRC or tax residency certificate that certifies your tax residency status. 
 
"Make sure that the correct DTAA ANIMISHA has been applied. You will have to determine that up to what percentage and subject to which provisions the relief is allowed, which can then simply be deducted from your total tax li ability," says Varun Advani, Chief Operations Officer, Makemyreturns.com. Consider taking professional help in case you are confused. 
 
 (Image: Indiatimes)

Tracking black money: Be extra careful in declaring you foreign assets this year!

In a bid to avoid embarrassment in future, professionals who used to work overseas declared <keyword id="124708" type="UNKNOWN" weightage="20" keywordseo="unaccounted-wealth">unaccounted wealth</keyword>. The total sum declared by doctors, engineers and managers amounted to Rs 4,147 crore. 
 
However, the amount was still less that the expectations of the government. 
 
The declared money was more than the number of filings made by companies, trusts, etc. 
 
Experts pointed out that these professionals declared assets out of fear and wanted to be safe in all aspects. 
 
Tax advisors said Indians who have come back declared income and investments made when they were abroad. 
 
They also pointed that the profile of assets had changed that was declared. 
 "In 1997, under the <keyword id="782168" type="ENTERTAINMENT" weightage="20" keywordseo="voluntary-disclosure-of-income-scheme">Voluntary Disclosure of Income Scheme</keyword> (VDIS), a lot of people had declared gold, cash and even property. This time around, most people declared money in bank accounts and shares of companies they held," said an expert. 
 
Total 638 people declared Rs 4,147 crore of previously undisclosed foreign assets during the three-month compliance window, which ended on September 30. 
 
Reportedly, the highest declared amount by an individual was Rs 200 crore. 
 
The government has warned those who didn't declare their unaccounted assets during 90-day period should be ready to face the consequences. This includes penalties and prosecution. The law makes wrongdoers liable for rigorous imprisonment of up to 10 years. 
 
(Image: Thinkstock)

You won’t believe the kind of people who just declared their black money. And, they’re not businessmen or million dollar firms

PM <keyword id="6354642" type="PERSON" weightage="100" keywordseo="Modi">Modi</keyword>’s demonetisation policy may fetch good results in the long run. But currently it’s taking a severe toll on common men who are facing difficulties in getting old notes exchanged and waiting in queue at ATM only to know that there is no cash in it. Life hasn’t been so difficult for daily wagers and software engineers alike, when there is money in account but can’t be used. The irony of money couldn’t have been worse. 
 
At such a juncture, when many daily wagers haven’t eaten ample meals in last few days because they couldn’t stand in queue at the bank fearing a day’s loss of income, things aren’t better for well offs staying abroad. 
 
For the NRIs and foreigners planning a visit to India, the fun isn’t the same anymore. Earlier they would be basking in the idea of meeting Indian friends and visiting historical monuments in Rajasthan, Uttar Pradesh and Delhi. Now they can only think of how to get enough cash in hand. 
 Indian economy, apart from a few exceptions, is largely dependent on cash. Be it street snacks stores to ticket counters of railways at small stations. A few countries in the Middle East, <keyword id="6356662" type="COUNTRY" weightage="100" keywordseo="Singapore">Singapore</keyword>, <keyword id="8695" type="COUNTRY" weightage="20" keywordseo="Malaysia">Malaysia</keyword>, Sri Lanka, Nepal and the countries where Indian population is a bit denser, there are options to change to Indian currencies directly from local ones. Instead of changing to USD first, this foreign exchange has two benefits. Firstly there is not much loss of money in the name of exchange rate. Also you won’t have to depend on another forex office to get the dollar changed after landing in India. 
 Travel advisors make sure people visiting India change to rupee before boarding the flight. The recent demonization has left the tourists in tension. According to <keyword id="265234" type="PERSON" weightage="20" keywordseo="Sreyashi-Sen">Sreyashi Sen</keyword>, an entrepreneur in Singapore, all the forex offices where they would get Indian currency have stopped changing money to rupee. Leading forex like <keyword id="201800" type="PERSON" weightage="20" keywordseo="Mustafa">Mustafa</keyword> has also put a board outside saying ‘No INR’. 
 
Sen, planning a visit to Goa early next week would have count some extra bucks when she lands in India to get currencies changed. Moreover if among the few available forex counters in Goa are non-operative, by any chance, she would be left at the mercy of god. 
 Idmantzi, a Mexican citizen on her India trip is currently halted at Darjeeling in <keyword id="6357783" type="CITY" weightage="20" keywordseo="West-Bengal">West Bengal</keyword>. She is a solo traveller without any acquaintance in India. She was carrying a credit card from her country, which isn’t operating in India. The cash, she carried, is in Rs 500 mostly, which has been refused by the hotel and other places there. She had to ask favour from her embassy, who rushed to Darjeeling and bailed her out. 
 If these miseries aren’t enough, an old couple from <keyword id="6354925" type="COMPANY" weightage="20" keywordseo="Kolkata">Kolkata</keyword> who went to visit their son in Malaysia had a tough time returning home from Kolkata airport. After they landed at the airport yesterday, the pre-paid counter didn’t accept the notes they carried a month back. Forget booking taxi through apps, for they don’t own a smartphone. Finally a normal yellow taxi decided to ferry them on the condition of paying full Rs 500 without any change in return. The septuagenarians had to shell out Rs 500 for a distance of mere 10 kilometres. Possessing a great sense of humour, the septuagenarian man told the author, “We don’t have any <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">black money</keyword>. But a note of Rs 500 at the time of economic black out.”

Not
just India, people staying in Singapore and Dubai are facing trouble over Modi’s
demonetization

The Centre has revealed the names of three people against whom prosecution has been initiated for stashing <keyword id="6356023" type="UNKNOWN" weightage="100" keywordseo="Black-Money">black money</keyword> in foreign banks. The names were revealed in the affidavit that the Centre has freshly submitted to the Supreme Court to explain its ‘misunderstood’ stand on the issue of revealing the names of <keyword id="2571247" type="UNKNOWN" weightage="100" keywordseo="Foreign-bank-account">foreign bank account</keyword> holders. 
 <keyword id="2571248" type="UNKNOWN" weightage="100" keywordseo="Pradeep-Burman">Pradeep Burman</keyword> of the Dabur group is among the names mentioned in affidavit submitted before the Supreme Court. The other names are <keyword id="349508" type="PERSON" weightage="100" keywordseo="Radha-Timblo">Radha Timblo</keyword>, a Goa-based mining baron, and Rajkot-based businessman <keyword id="2571234" type="UNKNOWN" weightage="100" keywordseo="Pankaj-Chimanlal-Lodhiya">Pankaj Chimanlal Lodhiya</keyword>. The other names, which also include some high-profile politicians, will be revealed only after prosecution is initiated against them. 
 
The government had earlier said that revealing all names without scrutinising the illegalities committed by them would violate the right to privacy. As per the rules laid down by the Reserve Bank of India, an individual can legitimately deposit $125,000 in a foreign bank per year. In its earlier affidavit, it had cited bilateral agreements, according to which, names of individuals holding accounts in foreign banks cannot be disclosed unless prosecution for committing irregularities. 
 
Earlier, the Supreme Court had asked the central government to set up a high-level task force to monitor the work of intelligence and law-enforcing agencies in bringing back the black money deposited in foreign banks.

Three
Names In The Black Money Case Get Revealed

New Delhi, Feb 11 () The Income Tax department has issued notices under foreign black money law in 422 cases involving undisclosed assets and income of over Rs 12,600 crore till December 2019, Parliament was informed on Tuesday. Minister of State for Finance Anurag Singh Thakur said the Income Tax Department has taken continuous and concerted actions under the Black Money (Undisclosed Foreign Income &amp; Assets) and Imposition of Tax Act since it came into force on July 1, 2015. "As a result, as on December 31, 2019, notices have been issued in 422 cases under this Act, involving undisclosed foreign assets and income of over Rs 12,600 crore," he said in a written reply to the Rajya Sabha. With regard to deposits made in unreported foreign bank accounts in HSBC cases, so far undisclosed income of more than Rs 8,460 crore has been brought to tax and penalty of more than Rs 1,290 crore levied. About 204 prosecution complaints have been filed. "Sustained investigations conducted in the cases revealed by International Consortium of Investigative Journalists (ICIJ) have led to detection of more than Rs 11,010 crore of credits in the undisclosed foreign accounts so far. About 99 prosecution complaints have been filed," Thakur said.In the Panama Paper Leaks investigations, undisclosed foreign investments amounting to over Rs 1,550 crore have been detected. About 38 prosecution complaints have been filed, he added. JD ANUANU

Govt issues notices in 422 cases involving Rs 12,000 cr under foreign black money law

The finance ministry said it has received Rs 3,770 crore from 638 declarations under the one-time <a href="http://www.businessinsider.in/searchresult.cms?query=black+money">black money</a> compliance window under the new anti-Black Money Act. 
 
The deadline to make <a href="http://www.businessinsider.in/Fin-Min-cracks-the-whip-on-black-money-Disclose-your-foreign-incomeand-assets-or-face-consequences/articleshow/47899820.cms">declarations</a> was September 30. 
 
"638 number of declarations have been received under the compliance window declaring undisclosed foreign assets amounting to Rs 3770 crore. These figures are subject to final reconciliation," the Finance Ministry said in a statement based on figures provided to it by the CBDT. 
 
The ministry further stated tax at 30% rate and penalty at 30% is to be paid by December 31 this year. 
 
READ ALSO: <a href="http://www.businessinsider.in/Black-money-blues-Promoters-are-working-overtime-to-utilise-unaccounted-funds/articleshow/49149924.cms">Black money blues? Promoters are working overtime to utilise unaccounted funds!</a> 
 The <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">Black Money</keyword> (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was enacted to deal with <a href="http://www.businessinsider.in/Heres-what-Indians-residing-abroad-can-do-to-avoid-law-suit-under-the-Black-Money-Law/articleshow/47989798.cms">black money stashed abroad</a>. 
 
"The Act also provided for a compliance window for a limited period to persons who have undisclosed foreign assets which they had not disclosed for the purposes of Income-tax so far," the statement added. 
 
The compliance window opened on July 1 this year. 
 
(Image: Thinkstock)

Govt’s Black Money declaration drive has flopped! Only 638 declarations made amounting to just Rs 3,770 cr

The <a href="http://www.businessinsider.in/searchresult.cms?query=Special+Investigation+Team">Special Investigation Team (SIT)</a> is leaving no stone unturned to unearth <a href="http://www.businessinsider.in/searchresult.cms?query=black+money">black money</a> and the tax authorities are in a haste to file cases against people having illicit money stashed abroad. Following this, the foreign bank account holders are now under pressure and crowding tax tribunals to either stop persecution or to disclose their names. 
 
However, as per lawyers and chartered accountants, the tax authorities are showing inappropriate haste in filing criminal cases for concealment of income, even when appeals are pending before adjudicatory forums. 
 The name of KK Modi, chairman of Modi group, allegedly appeared in the <keyword id="6358584" type="CITY" weightage="20" keywordseo="HSBC">HSBC</keyword> list after which he moved the <a href="http://www.businessinsider.in/searchresult.cms?query=ITAT">Income Tax Appellate Tribunal (ITAT)</a> seeking a stay on prosecution proceedings initiated against him. Modi denied any comment and said that he was not aware of any such account in any foreign bank which has around Rs 3 crore deposited. 
 As per an <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> officials aware of the matter, Modi has paid taxes under protest but refused to sign the consent form. The matter was presented in front of the <keyword id="6402350" type="ORGANIZATION" weightage="20" keywordseo="ITAT">ITAT</keyword> last week and another date has been fixed for the hearing. 
 
Meanwhile, in June this year, the tax authorities issued a show-cause notice, under Sections 276 (c) and 276 (d) of IT Act, for initiation of prosecution proceedings for alleged concealment of income. A questionnaire was sent to Modi's office, requesting a formal response, but his spokesman Harmanjit Singh refused to comment. 
 Modi’s advocate in ITAT, senior advocate Ajay Vohra also refused to comment on the matter. The <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">Income Tax Department</keyword>'s representative questioned the jurisdiction of ITAT to hear the petition by Modi seeking a stay, since the matter had to do with a criminal case. 
 
The representative informed the tribunal that "on the Swiss account, Mr Modi's address is there, mobile number is there, we conducted a search, he conceded and paid taxes but they are refusing to own up the transaction, and also refusing to sign the consent form." However, Modi's lawyer denied owning the account. "When the Swiss account doesn't belong to me, I have no locus to sign the consent form." He also informed the tribunal that his appeal has been dismissed by CIT (Appeals). 
 
However, according to official sources, the ITD had initiated prosecution proceedings against Modi, even before the appeal could be disposed of by CIT (Appeals). 
 
Similarly, in cases of Sanjiv Gupta, Pradip Burman, Rear Admiral PN Aggarwal, all foreign account holders, appeals were pending before CIT (appeals), but criminal proceedings were initiated against them. This issue also figured in Bishwanath Garodia's case, another HSBC account holder, who has got relief from Calcutta high court. 
 
The court order, reviewed by Economic Times says, no steps can be taken against Garodia, "till the appeal pending before the Commissioner (appeals) is disposed of." 
 
On May 7, this year CJM Alipore had issued summons against Bagrodia, on a complaint filed under section 276 (c), by tax authorities. Garodia had claimed that the "issue regarding the alleged concealment of income by the writ petitioner by maintaining an account with HSBC, Geneva, Switzerland is sub judice before the Commissioner (Appeals) Central -21, Kolkata." 
 The high court order also mentioned about an SC observation in Commissioner of Income Tax vs Bhupen Champak Lal Dalal case, wherein the apex court affirmed the order of the <keyword id="48485" type="ORGANIZATION" weightage="20" keywordseo="Bombay-high-court">Bombay High Court</keyword>, staying criminal proceedings. It said, "when ultimately the result to come out of the proceedings before the appellate authorities would have a definite bearing on the cases alleged against the respondents, we find that the high court order is justified in granting the interim order it did." 
 
Image: thinkstock

Black Money: Foreign bank account holders accuse tax authorities of haste in filing complaints

The <keyword id="44734" type="ORGANIZATION" weightage="60" keywordseo="Indian-Government">Indian government</keyword> said today it has no official estimate as to the amount of <a href="http://www.businessinsider.in/searchresult.cms?query=black+money&amp;sortorder=effectivedate">black money</a> that has been sent to foreign countries. 
 "Determination of <keyword id="6356023" type="UNKNOWN" weightage="40" keywordseo="Black-Money">black money</keyword> sent to foreign countries by Indian persons is subject matter of investigation and other follow-up actions by relevant <a href="http://www.businessinsider.in/searchresult.cms?query=law+enforcement&amp;sortorder=effectivedate">law enforcement</a> agencies, including <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+Department&amp;sortorder=effectivedate">Income Tax Department</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Enforcement+Directorate&amp;sortorder=effectivedate">Enforcement Directorate</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=CBI&amp;sortorder=effectivedate">CBI</a> etc, which is on-going. "However, details regarding the amount of money involved in such cases are not maintained centrally," Minister of State for <keyword id="25455" type="ORGANIZATION" weightage="80" keywordseo="finance">Finance</keyword> <a href="http://www.businessinsider.in/searchresult.cms?query=Jayant+Sinha&amp;sortorder=effectivedate">Jayant Sinha</a> said in a written reply to Rajya Sabha. 
 
When asked what India’s share in black money in tax havens across the world is, he said there is no evidence whether the recent estimate of $152-181 billion by economists from Bank of Italy necessarily represents India's share in <a href="http://www.businessinsider.in/searchresult.cms?query=black+money&amp;sortorder=effectivedate">black money</a> stashed abroad. 
 
Image Credit: Indiatimes

The Indian govt has no official
estimate of black money

The <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">Black Money</keyword> Act (the Act) had been promulgated with the intention to pursue black money stashed overseas. The Act levies tax at the rate of 30% on any undisclosed foreign income and assets held abroad by a person who is ordinarily resident in India. Additionally, the act provides for a penalty equivalent to three times the value of tax. Therefore, the total tax exposure can be as high as 120%. Further, the incumbent may be subject to imprisonment for a maximum term of 10 years. 
	 
	With a view to provide relief to the taxpayer and to encourage him/her to disclose their undeclared foreign income and assets, the Act provided for a one-time compliance window for declaration of undisclosed foreign income and assets by the taxpayer. Upon declaration, the taxpayer was liable to tax at the rate of 30% of the fair market value of the assets and a penalty of 100% of the tax, bringing the tax rate to 60% of the value of the assets. It was also clarified that the contents of the declaration will be used as evidence against the taxpayer under the Income Tax Act, 1961, the Wealth Act, 1957, or Foreign Exchange Management Act, 1999 and the value of the assets will not be chargeable to wealth tax. The time period for declaration expired on 30 September 2015. 
	 
	Black money: The current scenario 
	 
	However, the one-time relief received a tepid response and as per the government announcement, it received details of undisclosed foreign assets worth Rs3,770 crore from 638 declarants which translates into an average of INR6 crore per declarant. However the Revenue Secretary Hasmukh Adhia in a press conference on October 6, revised the figure from INR3,770 crores to INR 4147 crores. The miserly value of declaration further strengthened the belief that many of the big evaders have chosen not to avail the benefit of the compliance window. 
	 
	There are many reasons for the defeated response to this one-time opportunity. Lack of trust that the information provided may not remain confidential has been cited as the major reason for people not opting for this route. The government laid down stringent penal provisions and achieved its objective of creating fear in the minds of people, thereby acting as a deterrent for future creation of black money. But the existing evaders were also fearful that the declarations made by them may be used against them under some other law. 
	 
	Another major reason for people to back out was the possibility of a probe into interrelated transactions, with some of the people involved in a transaction willing to make a declaration, while the others may choose not to declare. Further, there also exists the possibility of routing money into India through the stock market. 
	 
	In addition to the above, many other reasons such as insufficient time provided to make the declaration, a steep tax rate of 60 per cent (including penalty) and above all a lack of clarity on the interpretation of certain provisions of the Act, have led to people not opting for the one-time option. 
	 There are numerous estimates of the amount of black money stashed abroad, ranging from 10 to 100 per cent of India's GDP. As per <keyword id="6354572" type="ORGANIZATION" weightage="20" keywordseo="CBI">CBI</keyword> estimates, Indian black money amounts to $500 billion. 
	 
	Therefore a problem this large, cannot be resolved through a single Act. An effective all round strategy is required to be formulated and struck from all directions. 
	 
	What can the Govt do? 
	 
	One of the biggest factors for creation of black money has always been high rates of taxation. The Finance Minister is his last full-budget made a commitment to bring down the corporate tax rate to 25% over the next four years. A reasonable tax rate can serve as a big incentive for people to pay tax and, thereby automatically curbing black money creation. 
	 
	Further, the government has entered into several bilateral and multi-lateral agreements with several countries for automatic exchange of information about Indian account holders in their banks. As a consequence of these agreements, banks are adopting a cautious approach while opening back accounts of Indian residents. Some are even going to the extent of seeking an undertaking/CA certificate certifying that the money proposed to be deposited is in compliance with Indian laws. 
	 
	Another constructive measure which may act as a deterrent for creation of black money is the requirement of quoting PAN for cash transactions beyond a certain threshold. 
	 
	Apart from the measures being taken by the government, some trends emerging on account of a change in life style of the urban population, such as increased use of plastic money, opening of a large number of payment gateways, internet banking and e-commerce are expected to bring about more transparency in transactions. 
	 
	Further, black money creation and corruption at various levels go hand in hand. One cannot think of curbing black money creation without curbing corruption. Therefore, the government in its effort to control foreign based and domestic black money should take effective punitive action reduce corruption and curb black money creation. 
	 
	Finally, it is only through a combination of events and actions on the part of the government and people at large, can India’s dream of achieving a black money free and prosperous economy. It is a transition in which the gestation period is expected to be very long. 
	 
	The article has been authored by Prashant Kapoor, partner, M&amp;A Tax, and Suvira Agarwal, technical director, KPMG in India. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of the organisation.

Budget 2016: Black money haunts the NaMo Govt

Those under investigation for unaccounted foreign assets allegations won’t get the benefit of a one-time disclosure window under the new <keyword id="6356023" type="UNKNOWN" weightage="100" keywordseo="Black-Money">black money</keyword> law if the government had prior information about this, according to detailed rules on the last chance being offered to people looking to come clean. Hence, those under the so-called <keyword id="6358584" type="CITY" weightage="80" keywordseo="HSBC">HSBC</keyword> list won’t get any leeway. On the other hand, those who declare such assets during the disclosure period won't find themselves being prosecuted under other laws based on this information. Assets will have to be valued in general at cost or fair market value on the valuation date, whichever is higher, according to the rules issued by the <keyword id="47209" type="ORGANIZATION" weightage="100" keywordseo="Finance-Ministry">finance ministry</keyword> on Friday. The government is giving black money holders one last chance to pay 30 per cent tax and 30 per cent penalty to escape the law that provides for imprisonment of three to 10 years for undisclosed foreign assets or income. 

	Disclosures can be made from July 1 to September 30, with another three months ending December 31 to pay up, the government said earlier this week. The law came into force on July 1. 

	"Considering the stringent nature of the provisions of the new law... (it) provides for a one-time compliance opportunity for a limited period to persons who have any foreign assets which have hitherto not been disclosed for the purposes of income tax," the finance ministry said in the explanatory statement on the window. 
 

	Any statement in which the assessee fails to pay tax or misrepresents facts will be deemed invalid and treated as a non-declaration, inviting the harsh provisions of the law passed in the budget session.
 It is a very simple and clear compliance scheme that has been given in line with the letter and spirit of the law, said <keyword id="120753" type="POSITION" weightage="100" keywordseo="revenue-secretary">Revenue Secretary</keyword> <keyword id="6359111" type="PERSON" weightage="60" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword>. The government has not promised any confidentiality to those declaring undisclosed foreign assets under the black money law but said it won't be used as evidence under legislation such as the harsh <keyword id="6368276" type="COMPANY" weightage="100" keywordseo="Foreign-exchange">Foreign Exchange</keyword> Management Act (FEMA). 

	"The contents of the declaration shall not be admissible in evidence against the declarant in any penalty or prosecution proceedings under the Income Tax Act, the Wealth Tax Act, the Foreign Exchange Management Act, the Companies Act or the Customs Act," the government said. Also, the value of assets in the declaration won't be liable to wealth tax for any assessment year.
 

	In the case of bank accounts, all deposits will be added up to arrive at the taxable amount but credit will be given for any withdrawals deposited back into the account. The government will accept the estimates of valuers approved by the government of the country where the asset is located. It has clarified the valuation rules through illustrations and will soon issue FAQs to make it easily understandable.
 

	"It is time now for people to look at their existing assets/ income positions and utilise this opportunity for onetime disclosure to bring their records up to date," Amarpal Chadha, tax partner, EY India, told ET.
 

	The government has been receiving data from various sources about foreign assets of Indians. If the revenue authorities had information about any asset on June 30, then the same has to be excluded and the declaration filed again.
 

	In respect of such assets, the one-time opportunity will be denied and action taken under the law. Additionally, those already under income tax investigation before June 30 or against whom survey and search have been conducted and proceedings are still on on will not be able to use this opportunity.
 

	The disclosure under this window can be made for any undisclosed asset located outside India and acquired from income chargeable to tax under the Income Tax Act for any assessment year prior to that of 2016-17. A senior government official told ET the law allows the tax authorities to go back 16 years.

	Experts said the rules were reasonable and should encourage people to declare such assets.
 

	"This indeed is a one-time opportunity and the taxpayer needs to make sure to make the correct disclosure," said Kuldip Kumar, partner at PwC. "Any misrepresentation or suppression of facts or information will make the declaration void as if such declaration was never made and tax payer would be subject to the penal consequences under the Act. Further, the amount of tax and penalty paid would also not be refunded."
 

	The declaration may be filed with the Commissioner of Income Tax, Delhi, or online through the e-filing portal. 

	 
	 
	(image credits: indiatimes)

Tough Black Money law exempt those under investigation from getting any leeway

With both the one-time black money declaration windows concluded, the Income Tax department is set to intensify its crackdown against stash holders after a recent case where an IDS participant surrendered a fresh Rs 30 crore of unaccounted wealth to the taxman after raids were conducted against him.et et 
 
The case that recently took place in Kolkata has stunned authorities of the I-T investigations wing after the said business entity produced, during searches, a bonafide receipt of declaring about Rs 3 crore worth of black money under the Income Declaration Scheme (IDS) that ended on September 30. 
 
The entity, however, had concleaed about Rs 30 crore illegal wealth which only came to light when the department conducted a "routine search" base on "actionable information" of tax evasion few days back. 
 
While official sources did not disclose the identity of the entity citing IDS confidentiality clauses, they said the taxman will undertake strict action of penalty and prosecution against the entity as he hid his actual income and made a partial declaration under the IDS. 
 
In yet another similar case, a Delhi-based lawyer recently disclosed Rs 125 crore of black money to the taxman after searches were conducted against him, post the closure of IDS. 
 
In this case reported from the national capital, the person concerned did not avail the IDS opportunity but got caught soon after the taxman came calling at his doorsteps. 
 
Tax officials said there have been few more cases in the southern part of the country where tax evasion worth crores has been found after searches were carried out by the department, after the IDS window closed. 
 
Officials said taking into cognisance such cases, I-T sleuths are now expected to intensify their search and seizure operations to unearth as much black money as possible within this fiscal. 
 
They said while there is no target to achieve in this regard, these recent disclosures indicate that some more people who had used the IDS to declare their illegal wealth to the government could only have parted with only some portion of it and not in full even as some had totally concleaed their tainted wealth. 
 
A huge sum of Rs 65,250 crore in black money was declared through the one-time domestic black money declaration window also known as IDS, marking the biggest-ever disclosure of hidden wealth that will rake in about Rs 30,000 crore in taxes to the exchequer. 
 
Last year, under a similar scheme for foreign black money holders, 644 declarations of undisclosed foreign income and assets were received, and just Rs 2,428 crore was collected in taxes. 
 
The government had earlier made it clear that those who hide their black wealth after the closure of these two opportunities will have to face legal consequences emerging out from the action of tax and financial enforcement agencies.

No more relaxation for black money

The pursuit of the <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+government">Indian government</a> to bring back <a href="http://www.businessinsider.in/searchresult.cms?query=black+money">black money</a> has tensed banks overseas and are asking tough questions about people and entities from the country who looking to open accounts with them. 
 
Apart from exercising caution about those who possess unaccounted wealth and are liable for punishment, banks are weary of the fact that those found guilty of helping them move that money will also face harsh action under the new law. 
 
A number of <a href="http://www.businessinsider.in/searchresult.cms?query=tax+havens">tax havens</a> like the Isle of Man and the British Virgin Islands have begun to share data on bank accounts held there. 
 
This comes in the backdrop of countries signing global agreements and tax treaties, which include provisions for cooperation on evasion. 
 
In the backdrop of reduced global tolerance for evasion, banks are likely to face closer scrutiny relating to customers' tax residential status, legal and beneficial ownership of accounts, and their use of power of attorney. 
 
Such intermediaries are asking for <a href="http://www.businessinsider.in/searchresult.cms?query=income+tax+return">income tax returns</a>, sources of funds and other related information to ensure all foreign transactions are above board, a banker familiar with the development told Economic Times. 
 
“The new law has caused concerns amongst intermediaries such as banks and consultants... especially considering that the law does not provide for detailed guidelines on what could be considered abetment and what precautions would be necessary for such intermediaries," Rajesh H Gandhi, partner, tax, Deloitte Haskins &amp; Sells LLP told ET. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Central+Board+of+Direct+Taxes">Central Board of Direct Taxes</a>, the apex direct taxes body, will soon issue detailed guidelines on what it considers abetment and the action that will be taken, said a finance ministry official. 
 
Under the Undisclosed Foreign Income and Assets (Imposition of Tax) Act 2015 imposes civil and criminal liabilities on any person who helps or induces another to make a wrong declaration relating to tax. This will be punishable with rigorous imprisonment ranging from six months to seven years. This provision also applies on banks and financial institutions aiding the concealment of foreign income, assets of resident Indians or falsification of documents. 
 
The law makes hiding wealth overseas a criminal offence attracting up to 10 years of rigorous imprisonment.

You Searched For "foreigners black money" and got 12 results

Tracking black money: Be extra careful in declaring you foreign assets this year!

BI India Bureau

You won’t believe the kind of people who just declared their black money. And, they’re not businessmen or million dollar firms

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Not just India, people staying in Singapore and Dubai are facing trouble over Modi’s demonetization

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Three Names In The Black Money Case Get Revealed

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Govt issues notices in 422 cases involving Rs 12,000 cr under foreign black money law

PTI

Govt’s Black Money declaration drive has flopped! Only 638 declarations made amounting to just Rs 3,770 cr

BI India Bureau

Black Money: Foreign bank account holders accuse tax authorities of haste in filing complaints

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The Indian govt has no official estimate of black money

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Budget 2016: Black money haunts the NaMo Govt

Guest Author

Tough Black Money law exempt those under investigation from getting any leeway

BI India Bureau

No more relaxation for black money

BI India Bureau

Foreign banks are spooked by India’s new black money law, taking caution before opening accounts

BI India Bureau

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