Skip to main content

8 things you must know about the Undisclosed Foreign Income & Assets Bill, 2015

The Undisclosed Foreign Income & Assets (Imposition of Tax) Bill, 2015 has been passed in both the houses and the bill now awaits the President’s assent to become a law.

Here are the highlights of this bill –
  • The bill proposes that starting financial year 2015-16 undisclosed foreign income & assets will be taxed under this new bill. Such income & assets will no longer be covered under the existing Income Tax Act, 1961.
  • The new bill only applies to the Residents of India (including their legal heirs).
  • A flat tax rate of 30% shall be charged on undisclosed foreign income and asset. A penalty of 90% of the undisclosed income will also be charged.
  • No exemptions, deductions or set off of any carried forward losses (as provided under the IT Act) would apply to such income & assets.
  • A penalty of Rs 10lakhs may be charged for failure to include details of foreign assets or income or in the income tax return or if inaccurate details have been furnished.
  • Evasion of these taxes may also result in imprisonment from 3 years to 10 years. Cases where return has been filed but the tax payer failed to disclose foreign assets will also be punishable with imprisonment of 6 months to 7 years.
  • Since this bill is applicable to Residents – there is no exemption for expatriates who may become residents by virtue of their extended stay – so they much watch out for compliance with this bill.
  • The bill after receiving President’s assent will offer a window of one time compliance – where tax payers can disclose such foreign income & assets. During this window, a 30% tax (mentioned above) and a 30% penalty shall be charged instead of the 90% penalty. This window will be announced shortly.

Comments

Post a Comment

Popular posts from this blog

Difference between Form 16 & Form 16A Some of our customers have written to us enquiring about the difference between Form 16 and Form 16A. In this article, we will tell you about both these forms and their importance while filing your income tax returns. Form 16 Form 16 is your  Salary  TDS Certificate.   If your income from salary for the financial year is more than the minimum exemption limit of Rs 2,50,000 your employer is required by the Income Tax Act to deduct TDS on your salary and deposit it with the government. If you have also disclosed your income from other heads to your employer, he will consider your total income for TDS deduction. If your income is below the minimum exemption limit your employer will not deduct any TDS and may not issue you this form. If you have worked with more than one employer during the year, you will have more than one Form 16. This Form 16 is a certificate, where the employer is certifying details regarding t...
Post a Comment
Read more
Tax benefits on Health Insurance by   My Tax India  on   March 8, 2015   in   Save Tax ,  Section 80 Deductions ,  Union Budget 2015-16 Here are the details of tax benefits in Budget 2015 when you purchase health insurance. These are applicable for financial year 2015-16. Deduction under section  80D  for self, spouse, dependent children – Rs 25,000 (preventive health check up of Rs 5,000 included) Deduction under section  80D  for parents (who are senior citizens) – Rs 30,000 ((preventive health check up of Rs 5,000 included). This deduction is allowed for both dependent and non-dependent parents. In case your parents are super senior citizens (more than 80 years old) and are uninsured you can claim a maximum of Rs 30,000 as deduction in your income towards their medical expenses. Therefore you stand to claim a total deduction of Rs 55,000 when you buy health insurance for yourself and your parents and save significant...
Post a Comment
Read more
Indian Tax Souce Wishes You a happy " Sankranthi "
Post a Comment
Read more