Compliance window enables declaration of overseas untaxed assets online

• Compliance window has given another chance to those who wants to utilize the recently notified one-time black money compliance window can also use the e-filing facility of the tax department.
• They can declare their foreign-based untaxed assets online now instead of manually filing and committing of these stash properties.
• According to the scheme under the window, “digital signature” of the individual is mandatory to validate the declaration.
• According to the government recent notification the three-month compliance window has begun on July 1st.
• The tax and penalty on such declared assets or funds can be paid till December 31st.
• This facility is provided with an aim that anyone who wants to use the window for declaring unreported assets can do it with maximum secrecy and in quick time.

Digital Signature:-

A digital signature, similar manner as a handwritten signature that authenticates electronic documents.

Rules:-

• For the purpose of levy of tax and penalty ,Central Board of Direct Taxes(CBDT) had issued the rules under the black money law for valuing overseas income and assets
• Finance Ministry confirmed that the ongoing compliance window is going be the last chance to come clean on undisclosed foreign assets as the rules for the new black money law has become “simple and clear”.
• The facility can be utilized by visiting following official website,
• https://incometaxindiaefiling.gov.in, the official added.

Black money:-

• These are Undisclosed overseas assets such as immovable property, jewelry, shares and artwork etc which can be valued at fair market prices for the tax and penalty (under the new Act).

Penalty for Black Money:-

• The Black Money(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, that came into effect from 1st July.
• Those availing the one-time ‘compliance window’ would be required to pay a tax of 30 per cent and a penalty of a similar amount.
• It validates for a 90-day compliance window under which a persons having undisclosed foreign assets and income, can come clean by declaring them and paying a total of 60 percent tax and penalty by e-filling the declaration.

Compliance window:-

It has become part of the new anti-black money law that was passed by Parliament in May and came into effect May 26 after the President’s assent.