Tuesday, 12 May 2015

LS clears Black Money Bill, limited time to be given to declare undisclosed income

A stringent law imposing a steep 120 percent of tax and penalty on undisclosed foreign assets and income besides a jail term of up to 10 years to deal with black money stashed abroad was passed by the Lok Sabha Monday.

Before the new law comes into effect, a limited period window will be provided to people to declare their till now undisclosed income and assets, pay 30 percent tax and a similar amount as penalty and escape prosecution.

The Bill was passed by voice vote with support including from opposition, after Finance Minister Arun Jaitley dismissed apprehensions that innocent people will be harassed under the "deterrent" law saying the government does not intend to proceed against trivial violations but wont let big fish escape the net.

Piloting the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, Jaitley said there would be a short compliance window for persons having undisclosed income abroad to come clean by paying 30 percent tax and 30 percent penalty.

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