The black money law has been operationalized from July 1. There will be a three months window for those with undisclosed overseas assets or incomes which will end on 30th day of September, 2015.
The last date for depositing tax and penalty is December 31, 2015.
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was passed by the Parliament in the Budget session. It will come into effect from April 1, 2016, after providing for a short ‘compliance window‘ to foreign asset holders to come clean.
The Order from Finance Ministry came with the notification of a 90-day compliance window lasting till September 30 for holders of unaccounted foreign income and assets to declare them. After declaring assets they will have time till December 31 to pay non-punitive tax and penalty of 30 per cent each to escape stringent punishment including jail term.
A dedicated cell will be set up in Delhi to accept declarations under the compliance window while another could be set up subsequently in Mumbai if required. All claims will be processed by these cells rather than assessing officers all over the country to ensure there is no harassment of those coming clean on undisclosed foreign wealth.
Those with unaccounted assets or funds outside will have to pay 30% tax and another 30% as penalty and in return government will not prosecute those coming clean under the black money act.
This law has provision for imprisonment up to 10 years apart from the payment of 30% tax and penalty of 90%.