CHAPTER IV
42. Penalty for failure to furnish return in relation to foreign income and asset 21
43. Penalty for failure to furnish in return of income, an information or furnish inaccurate particulars about an asset (including financial interest in any entity) located outside India 22
44. Penalty for default in payment of tax arrear 22
45. Penalty for other defaults 22
46. Procedure 23
47. Bar of limitation for imposing penalty 23
CHAPTER V
OFFENCES AND PROSECUTIONS
48. Chapter not in derogation of any other law or any other provision of this Act 24
49. Punishment for failure to furnish return in relation to foreign income and asset 24
50. Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India 24
51. Punishment for wilful attempt to evade tax 24
52. Punishment for false statement in verification 25
53. Punishment for abetment 25
54. Presumption as to culpable mental state 25
55. Prosecution to be at instance of Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General or Principal Commissioner or Commissioner
56. Offences by companies
57. Proof of entries in records or documents
58. Punishment for second and subsequent offences 27
CHAPTER
VI TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS
59. Declaration of undisclosed foreign asset
60. Charge of tax 28
61. Penalty 28
62. Manner of declaration 28
63.
64. Undisclosed foreign asset declared not to be included in total income
65. Undisclosed foreign asset declared not to affect finality of completed assessments
66. Tax in respect of voluntarily disclosed asset not refundable
67. Declaration not admissible in evidence against declarant
68. Declaration by misrepresentation of facts to be void
69. Exemption from wealth-tax in respect of assets specified in declaration
70. Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax
71.
72.
CHAPTER VII
73.
75.
76.
79.
80.
1.
BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX RULES, 2015
4.
5.
6.
7.
8.
9.
10.
11.
12.
13. Payment of sum under sub-section (2) or (5) of section
14. Service of notice, summons, requisition, order or any other communication under section 74
15.
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
[22
OF 2015]*
An Act to make provisions to deal with the problem of the black money that is undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and asset held outside India and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
Short title, extent and commencement
1. (1) This Act may be called the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
(2)It extends to the whole of India.
(3)Save as otherwise provided in this Act, it shall come into force on the 1[1st day of July, 2015]. Definitions.
2. In this Act, unless the context otherwise requires,— (1)“Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Income-tax Act;
*Dated 26-5-2015.
1. Substituted for “1st day of April, 2016” by the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (Removal of Difficulties) Order, 2015, w.e.f. 1-7-2015.
2[(2) “assessee” means a person,—
(a) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 (43 of 1961) in the previous year; or
(b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, 1961 (43 of 1961) in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired:
Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall be determined without giving effect to the provisions of clause (c) of section 72.]
(3) “assessment” includes reassessment;
(4) “assessment year” means the period of twelve months commencing on the 1st day of April every year;
(5) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
(6) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
(7) “participant” means—
(a) a partner in relation to a firm; or
(b) a member in relation to an association of persons or body of individuals;
(8) “prescribed” means prescribed by rules made under this Act;
(9) “previous year” means—
(
a) the period beginning with the date of setting up of a business and ending with the date of the closure of the business or the 31st day of March following the date of setting up of such business, whichever is earlier;
(
b) the period beginning with the date on which a new source of income comes into existence and ending with the date of closure of the business or the 31st day of March following the date on which such new source comes into existence, whichever is earlier;
(c) the period beginning with the 1st day of the financial year and ending with the date of discontinuance of the business other than business referred to in clause (b) or dissolution of an unincorporated body or liquidation of a company, as the case may be; or
2. Substituted by the Finance (No. 2) Act, 2019, w.r.e.f. 1-7-2015. Prior to its substitution, clause (2) read as under :
‘(2) “assessee” means a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, by whom tax in respect of undisclosed foreign income and assets, or any other sum of money, is payable under this Act and includes every person who is deemed to be an assessee in default under this Act;’
(d) the period of twelve months commencing on the 1st day of April of the relevant year in any other case, and which immediately precedes the assessment year.
(10) “resident” means a person who is resident in India within the meaning of section 6 of the Income-tax Act;
(11) “undisclosed asset located outside India” means an asset (including financial interest in any entity) located outside India, held by the assessee in his name or in respect of which he is a beneficial owner, and he has no explanation about the source of investment in such asset or the explanation given by him is in the opinion of the Assessing Officer unsatisfactory;
(12) “undisclosed foreign income and asset” means the total amount of undisclosed income of an assessee from a source located outside India and the value of an undisclosed asset located outside India, referred to in section 4, and computed in the manner laid down in section 5;
(13) “unincorporated body” means—
(a) a firm;
(b) an association of persons; or
(c) a body of individuals;
(14) “value of an undisclosed asset” shall have the meaning assigned to it in sub-section (2) of section 3;
(15) All other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.
CHAPTER II
BASIS OF CHARGE
Charge of tax.
3. (1) There shall be charged on every assessee for every assessment year commencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect of his total undisclosed foreign income and asset of the previous year at the rate of thirty per cent of such undisclosed income and asset:
Provided that an undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer.
(2) For the purposes of this section “value of an undisclosed asset” means the fair market value of an asset (including financial interest in any entity) determined in such manner as may be prescribed.
Scope of total undisclosed foreign income and asset.
4. (1) Subject to the provisions of this Act, the total undisclosed foreign income and asset of any previous year of an assessee shall be,—
(
a) the income from a source located outside India, which has not been disclosed in the return of income furnished within the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the Income-tax Act;
(
b) the income, from a source located outside India, in respect of which a return is required to be furnished under section 139 of the Income-tax Act but no return of income has been furnished within the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the said Act; and
(
c) the value of an undisclosed asset located outside India.
(2) Notwithstanding anything contained in sub-section (1), any variation made in the income from a source outside India in the assessment or reassessment of the total income of any previous year, of the assessee under the Income-tax Act in accordance with the provisions of section 29 to section 43C or section 57 to section 59 or section 92C of the said Act shall not be included in the total undisclosed foreign income.
(3) The income included in the total undisclosed foreign income and asset under this Act shall not form part of the total income under the Income-tax Act.
Computation of total undisclosed foreign income and asset.
5. (1) In computing the total undisclosed foreign income and asset of any previous year of an assessee,—
(i) no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee, whether or not it is allowable in accordance with the provisions of the Income-tax Act;
(ii) any income,—
(
a) which has been assessed to tax for any assessment year under the Income-tax Act prior to the assessment year to which this Act applies; or
(b) which is assessable or has been assessed to tax for any assessment year under this Act,
shall be reduced from the value of the undisclosed asset located outside India, if, the assessee furnishes evidence to the satisfaction of the Assessing Officer that the asset has been acquired from the income which has been assessed or is assessable, as the case may be, to tax.
(2) The amount of deduction referred to in clause (ii) of sub-section (1) in case of an immovable property shall be the amount which bears to the value of the asset as on the first day of the financial year in which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessed foreign income bears to the total cost of the asset.
Illustration
A house property located outside India was acquired by an assessee in the previous year 2009-10 for fifty lakh rupees. Out of the investment of fifty lakh rupees, twenty lakh rupees was assessed to tax in the total income of the previous year 2009-10 and
earlier years. Such undisclosed asset comes to the notice of the Assessing Officer in the year 2017-18. If the value of the asset in the year 2017-18 is one crore rupees, the amount chargeable to tax shall be A-B=C where,
A = Rs.1 crore, B = Rs. (100 × 20/50) lakh = Rs. 40 lakh, C = Rs. (100-40) lakh = Rs. 60 lakh.
CHAPTER III
TAX MANAGEMENT
Tax authorities.
6. (1) The income-tax authorities specified in section 116 of the Income-tax Act shall be the tax authorities for the purposes of this Act.
(2) Every such authority shall exercise the powers and perform the functions of a tax authority under this Act in respect of any person within his jurisdiction.
(3) Subject to the provisions of sub-section (4), the jurisdiction of a tax authority under this Act shall be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120 of that Act (including orders or directions assigning the concurrent jurisdiction) or under any other provision of that Act.
(4) The tax authority having jurisdiction in relation to an assessee who has no income assessable to income-tax under the Income-tax Act shall be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business.
(5) Section 118 of the Income-tax Act and any notification issued thereunder shall apply in relation to the control of tax authorities as they apply in relation to the control of the corresponding income-tax authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise direct in respect of any tax authority.
Change of incumbent.
7. (1) The tax authority who succeeds another authority as a result of change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it was left by his predecessor.
(2) The assessee in such a case may be given an opportunity of being heard, if he so requests in writing, before passing any order in his case.
Powers regarding discovery and production of evidence.
8. (1) The prescribed tax authorities shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:—
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath;
