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

Breaking: Aadhaar Pan Linking Has Been Extended To 31st March 2019.

The deadline for linking Aadhaar with Permanent Account Number (PAN) has been extended by the Central Board of Direct Taxes (CBDT) to 31 March, 2019. Section 139AA of the Income Tax Act, 1961, which came into effect from 1st July 2017, requires all taxpayers having Aadhaar Number or Enrolment Number to link the same with their PAN. The provision was incorporated into the Income Tax Act through Finance Act,2017. However, up until now, the PAN-Aadhaar linking deadline has been extended four times. The first deadline for linking Aadhaar was fixed as July 31, 2017, which got extended till August 31. The deadline was further extended to December 31, then March 31st and Finally June 30.
Post a Comment
Read more
Need Rent Receipts for HRA exemption? ClearSave is here To claim HRA exemption, you have to submit rent receipts to your employer. Usually employers need this proof of rent in January or February, before the financial year ends. It helps your employer give you exemption on HRA and adjust your TDS. Now you can prepare and print your rent receipts at  ClearSave . 1) Enter to clearsave .https://cleartax.in/save/rent and by Entering your rent and your door no. the below page will appear                  and now you should enter your name and your mail address and your owners name and owners pan number,from which date to till you would ike to take the receipt.      Just enter a couple of details to print these receipts and submit to your payroll department. You can even save & use them later. Remember to tell all your friends about it!           ...
Post a Comment
Read more