BLACK MONEY BILL PASSED AT THE LOK SABHA

                                                   Dealing with money stashed abroad

All resident of India shall come under this preview.

STRINGENT PENALTY:

1.       Undisclosed income and assets to attract penalty 90% of such assets.

2.       Non-disclosure or faulty disclosure to attract a flat Rs 10 lakh

3.       Failure to disclose to can attract six months to seven year’s rigorous imprisonment.

4.       Willful evasion of tax on foreign income to attract 3 year to ten year imprisonment.

5.       All those helping such evasion, bank and financial institution will face same punishment.

6.       Second offence penalty will increase to Rs 25 lakh to Rs 1 crore.

POWER TO TAX OFFICIALS:

1.       Powers of discovery and inspection.

2.       Power to issue of commission, issue of summonses, enforcement of attendance and production of evidence.

3.       Officials will have power to impound books of account and documents.

SAFEGUARDS IN THE LAW:

1.        Mandatory to issue notices and grant of opportunity of being heard.

2.       Appeal to the income-tax appellate tribunal, and to the jurisdiction high court.

3.       Assesse can go to supreme court on substantial question of law

4.       Foreign accounts with minor balance not to be covered by law.

ONE-TIME OPPORTUNITY FOR PERSONS TO BECOME TAX COMPLIANT:

1.       A limited window to declare undisclosed foreign assets.

2.       30% tax and an equal amount by way of penalty will be leived.

3.       No exemptions, deduction, set off & carried forward losses not allowed.

4.       No wealth tax will be levied on the declared income and no prosecution based income.

Derived from Economics Times of India.