All About Black Money Bill 2015

We all learn that The Black Money and Imposition of Tax Bill, 2015 was passed in Lok Sabha on 11^th of May, 2015. Under this act, the Undisclosed Foreign Income and Asset shall be separately taxed and such income shall therefore become a part of Income, under our Income Tax Act 1961. The main reason behind imposition of this was to curb the menace of Black Money.

Let’s dig in some of the highlights:

• ☻Applicability on Ordinary Resident ( and all those who shall be deemed to be assesse in default ) from 1^st April 2015
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• ☻Tax @ 30 % ( with penalty 3 times of tax ) shall be charged on the total Undisclosed Foreign Income and Undisclosed Foreign Asset.
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• ☻What is Undisclosed Foreign Income – Thhe income received from abroad but not disclosed as per the provision of Income Tax
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• ☻What is Undisclosed Foreign Asset – The Fair Market Value of the undisclosed Foreign Asset abroad. But if such asset has been acquired from income which has been taxed(fully or partially), then such value shall be deducted while calculating the value of Undisclosed Income. The year value shall be considered, depending upon when the A.O comes to know about, the year in which he comes to know that year value shall be considered.
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• ☻Neither any deduction nor any exemption or any set off shall be allowed.
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• ☻To all the assessee , a One Time Chance shall be given on 1/4/2016, to make a declaration about his Undisclosed Foreign Income and Asset and in such case only one time of tax and penalty shall be levied. Such taxed and penalty to be deposited before making declaration. ( If assessee makes declarationthen penalty shall be 1 time of tax )