The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act’) has been enforced from July 1, 2015.
The Black Money Act provides for 30% tax on the value of undisclosed foreign income or assets and a penalty of three times of tax so computed. It further provides for prosecution of up to 10 years in case of willful attempt to evade tax on foreign income or assets held outside India.
However, the Black Money Act allows one-time compliance window for the taxpayers to voluntarily disclose the undisclosed foreign income or assets. The declaration can made by September 30, 2015. Any person availing of benefit of compliance window is required to pay tax at the rate of 30% of value of undisclosed foreign income or asset and a penalty of 100% of tax. Such taxes and penalty are required to be paid by the declarant on or before December 31, 2015.
The Government has notified Form 6 to make declaration of undisclosed foreign income or asset under the compliance window. The taxpayer has an option to file the declaration either manually to CIT, Delhi or to e-file it using the digital signature.
Therefore, for the purposes of e-filing of Form 6, the Board has released the Java utility for the same. The taxpayer can now fill Form 6 by downloading the Java utility from e-filing website.
After filling the relevant information in Form 6 Java Utility, the taxpayer need to generate the .xml file and submit it under e-file option available after login at https://incometaxindiaefiling.gov.in. Declarant need to attach relevant scanned documents (i.e., scanned copy of valuation report or FMV computation) in PDF or ZIP format along with XML file. The size of PDF/ZIP documents could not exceed 50MB.