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.
