APPEAL TO APPELLATE TRIBUNAL [SECTION 18 read with Rule 7 Any person , aggrieved by the order passed by Commissioner (Appeals) may appeal to the Appellate Tribunal. The provisions for filing appeal before the Commissioner (Appeals) are given hereunder :- WHO CAN FILE APPEAL BEFORE APPELLATE TRIBUNAL? An order passed by the Commissioner (Appeals) could … Read more
Any person, who is not satisfied with the order passed by the Assessing Officer under the Black Money Act, can file an appeal against such order before the Commissioner (Appeals), The provisions relating to appeal before the Commissioner (Appeals) are as under :- WHO CAN FILE APPEAL BEFORE COMMISSIONER (APPEALS)? Any person can file appeal … Read more
RECTIFICATION OF MISTAKE SECTION 12 The tax authority can also rectify its order, if there is any mistake apparent from record in such order. Such rectification can be made when the mistake is identified by the tax authority itself or when such mistake is brought to its notice by assessee or the Assessing Officer. This … Read more
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