NEW DELHI: The Modi government on Friday unveiled a set of stringent provisions, including a 90% penalty on those who have undisclosed foreign assets and income overseas as it introduced a Bill to deal with black money stashed abroad. This will be above the 30% levy on the value of assets or income that will be imposed.
But those who want to avoid the hefty penalty will be given the option to pay 30% penalty of the value of undisclosed assets and avoid prosecution, the Undisclosed Foreign Income and Assets Bill introduced in the Lok Sabha proposed. Although the government wants the law to be active from April 2016, it has not specified how long the one-time compliance window would be open. The Bill has also detailed safeguards to prevent any misuse of the stiff provisions by tax authorities.
Apart from penalty, the bill provides imprisonment of up to 10 years for concealment , non-disclosure, false declaration as well as abetment. The provision for abetment can put financial advisors and chartered accountants in the crosshairs of the law should they be deemed guilty of cooking the books.
"It's not an amnesty scheme because under amnesty you only pay tax, and no penalty. Here the requirement is to pay tax at 30% and equivalent 30% as penalty. The intention of the government is not to give a soft landing facility to anyone. The one-time compliance opportunity is to enable such people who have hidden assets abroad to come clean and avail of the opportunity. It is not a revenue mobilization measure," revenue secretary Shaktikanta Das told TOI.
But those who want to avoid the hefty penalty will be given the option to pay 30% penalty of the value of undisclosed assets and avoid prosecution, the Undisclosed Foreign Income and Assets Bill introduced in the Lok Sabha proposed. Although the government wants the law to be active from April 2016, it has not specified how long the one-time compliance window would be open. The Bill has also detailed safeguards to prevent any misuse of the stiff provisions by tax authorities.
Apart from penalty, the bill provides imprisonment of up to 10 years for concealment , non-disclosure, false declaration as well as abetment. The provision for abetment can put financial advisors and chartered accountants in the crosshairs of the law should they be deemed guilty of cooking the books.
"It's not an amnesty scheme because under amnesty you only pay tax, and no penalty. Here the requirement is to pay tax at 30% and equivalent 30% as penalty. The intention of the government is not to give a soft landing facility to anyone. The one-time compliance opportunity is to enable such people who have hidden assets abroad to come clean and avail of the opportunity. It is not a revenue mobilization measure," revenue secretary Shaktikanta Das told TOI.
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