Two-month window for black cash declaration
THE FINANCE ministry plans to come out with a compliance window soon for those having black money or undeclared assets abroad to give them a last chance to make a voluntary disclosure or else they will have to face a stiffer penalty and criminal prosecution.
Senior finance ministry officials are of the view that a small compliance window of two to three months should be offered as last chance for declaration of assets and pay a penalty without being prosecuted under the new law. The window could be notified by the end of this month or early July.
Union finance minister Arun Jaitley will take the final call ” on the width of the window”and the date of notification, a senior official said.
Senior officials are of the view that the window would be kept as short as possible as the target base for the special exercise is not expected to be very large. A team of Central Board of Direct Taxes ( CBDT) is working on the draft of the proposed compliance window.
According to sources, the CBDT is in touch with the special investigation team on black money to decide if those being probed by the income tax department or other enforcement agencies or against whom notices have been issued would be eligible for availing the compliance window facility. The new law-Black Money ( Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015-will take effect from April 1, 2016, which is the assessment year but it deals with the financial year 2015-16.
Jaitley had told the Lok Sabha that there would be a short compliance window for people having undisclosed income abroad to come clean by paying 30 per cent tax and 30 per cent penalty. Once the compliance window closes, anyone found having undeclared overseas wealth would be required to pay 30 per cent tax, 90 per cent penalty and face criminal prosecution. The new law would not cover those having amounts to the tune of ` 5 lakh in bank accounts and will deal with foreign assets alone.