ASSESSMENT OF FOREIGN INCOME AND ASSETS – SECTION 10 The process of assessment of foreign income and asset shall comprise of the following steps : – Notice to produce documents OR EVIDENCE – Section 10(1) Inquiry in respect of undisclosed foreign income and assets – Section 10(2) Assessment of undisclosed foreign income and assets – … Read more
TAX AUTHORITIES UNDER THE BLACK MONEY ACT – SECTION 6 From here onwards, we will study the procedural part of the Black Money Act like, tax authorities, assessments, penalties, etc. This part is similar to the provisions under the Income Tax Act, 1961, which is covered under the ‘Paper 7 of Direct Taxes’. Let us … Read more
NO ALLOWANCE AND SET-OFF FOR COMPUTATION OF TOTAL UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 5 Under the provisions of the Income-Tax Act, where any unexplained money is found in the form of money, bullion, jewellery, etc, it would be charged to tax @ 60% u/s 115BBE. Further, no deduction of any expenditure , or … Read more
SCOPE OF TOTAL UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 4(1) Undisclosed foreign income or undisclosed foreign asset would arise, where the assesse :- Files ITR, but does not discloses foreign income in ITR There is non-disclosure of foreign income, due to non-filing of ITR Does not discloses foreign asset Thus, total undisclosed foreign income … Read more
Valuation of an Undisclosed Asset located outside India – Section 3(2) In order to determine the tax liability on various undisclosed foreign assets, it is important to determine their fair market value. Foreign assets include bank account outside India, shares, bullion, jewellery, archeological collections , financial interest in any entity etc. The Fair market value … Read more
Relevant previous year for chargeability to tax – Undisclosed Foreign Income – Section 3 The provisions of the Black Money Act are applicable with effect from July 1, 2015. In such a case, the question which arises is, what would be the taxability of undisclosed foreign income under the BMA, which was earned before July … Read more
Asset Located outside India Acquired by NR out of income not chargeable to tax in India – Section 2(11) In certain cases, a person may have been a non-resident at the time, when he acquired the foreign asset out of foreign his genuine sourced income. Subsequently, such person may become a resident in India, and … Read more
DEFINITION OF UNDISCLOSED ASSET LOCATED OUTSIDE INDIA – SECTION 2(11) An assessee who is holding any ‘undisclosed asset located outside India’ [hereinafter referred to as undisclosed foreign asset] may be liable to pay tax on the value of such asset. [Discussed in detailed at Para 7, Para 9 of this chapter]. Thus, it is important … Read more
Applicability of Black Money Act to Persons Resident in India The provisions of the Black Money Act may be applicable to the following : – Individuals / HUF , who are resident and ordinarily resident in India , if they are holding any undisclosed foreign asset outside India or have earned any undisclosed foreign income. … Read more
The provisions of Black Money Act shall be applicable only when the person, who has undisclosed foreign income or undisclosed foreign asset is covered within the definition of assessee. The term “assesse” means a person, who is a resident and ordinarily resident in India, within the meaning of Section 6(6) of the Income-Tax Act, who … Read more