- All deposits made in an undisclosed overseas bank account will be clubbed while assets will be valued at fair market price under the new black money law.
- All overseas income and assets, will be valued in rupee terms.
- The Black Money and Imposition of Tax Act, 2015, provides for a tax and penalty of 60 per cent if the foreign assets are disclosed within the compliance window and tax is paid by December 31.
- After the expiry of window, such persons have to pay tax and penalty of 120 per cent on the undisclosed income or assets held abroad.
Commissioner of Income Tax will inform the declarant within October 10 whether the competent authority has any prior information with regard to the assets declared.
- The declarant may revise his declaration within 15 days of receipt of the intimation.
- The holders of the assets will have to disclose details of the assets with regard to its location, fair market value and date of acquisition.
- The rules provide for the format of notices to be send to the persons holding undisclosed assets.
- The rules also provided a formula for calculating the fair market value of an unquoted equity shares
- The rules also provided a methodology for calculating the interest of a person in a partnership firm, association of persons or Limited Liability Partnership (LLP).
- The rules also said in case the person disclosing foreign income does not have a PAN, he or she would be required to apply for it.
Source:The Economic Times