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

Indian Tax Souce Wishes You a happy " Sankranthi "
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
Haven’t filed your Income Tax Return yet? 31st March is the last date to file If you haven’t filed your Income Tax Return for the past 2 financial years, do so before 31 st  March 2015. Return for financial year 2013-14  – Any individual who has a gross income of more than Rs 2,50,000 (before allowing any  deductions ) in financial year 2013-14 must file an Income Tax Return. If you did not file your Income Tax Return for financial year 2013-14 by 31 st  July 2014, you can still file your Return by 31 st  March 2015 without attracting penalty for late filing. If you do not file it by 31 st  March 2015 – the AO can levy a penalty of Rs 5,000 under section 271F for not filing on time. A Return which has not been filed within the due date cannot be revised. So be extra careful and double check your information so as to not commit a mistake. You cannot get an Income Tax refund or carry forward a loss unless you file your Return. You may need a  incom...
Post a Comment
Read more