Relevancy Of Assessment Year For Taxing Foreign Assets And Income Under The Black Money Act
1 year, 8 months ago

Relevancy Of Assessment Year For Taxing Foreign Assets And Income Under The Black Money Act

Live Law  

While presenting the Union Budget in 2015, the then Finance Minister announced, that in order to evade taxes in India some people had stashed away their money outside India and in order to curb this malaise a new legislation will be introduced to tackle the undisclosed assets and income of Indian citizens located outside India. Section 3 of the BMA is the charging provision which addresses taxing the foreign income or foreign asset located outside India for every assessment year which will commence from the 1 st day of April, 2016.The proviso to section 3 stipulates that the undisclosed asset/income located outside India shall be charged to tax on its value in the previous year in which the asset comes to the notice of the Assessing Officer i.e. The proviso to section 3 stipulates that the value of Foreign Asset is to be calculated with respect to the previous year in which the information is received by Assessing Officer but on the other hand, section 72 stipulates that where Foreign Asset is acquired prior to 01.04.2016, the year of acquisition shall be deemed to be the year in which notice under section 10 for the purpose of assessment is issued by Assessing Officer under the BMA. In such a situation, the Fair Market Value of such assets would be determined under section 3 with respect to the Previous Year 2021-22 relevant to Assessment Year 2022-23 but the year of acquisition will be deemed to be Previous Year 2022-23.Such an eventuality will surely raise a statutory conflict that the deemed year of acquisition of Foreign Asset under section 10 will be later than the previous year with respect to which the Fair Market Value of the Foreign Asset is required to be adopted under section 3 of the BMA which obviously sounds illogical. Thus, there is a conflict between section 3 and section 72 of the BMA because Assessment Year based on the deemed year of acquisition of Foreign Asset under section 10 becomes later than the Assessment Year based on the year of receipt of information with respect to which the Fair Market Value of the same Foreign Asset is required to be adopted under section 3 of the BMA.

India Respect Assets Assessment Black Money Income Notice Officer Act Bma Previous Asset Financial Year Foreign Asset Previous Year Taxing Foreign  assets  tax  respect  taxing  foreign  bma  relevancy  previous  officer  asset  act  money  black  31  income  assessment

History of this topic

Own foreign assets or income? Disclose now to avoid Rs 10 lakh penalty
5 days, 19 hours ago

Own foreign assets or income? Disclose now to avoid Rs 10 lakh penalty

India Today  

Failing to disclose foreign income and assets can land taxpayers in double trouble under both the Income Tax Act and the Black Money Act. STEPS FOR FILING AND DEADLINES Taxpayers must declare foreign income and assets in the applicable ITR for the assessment year they were a resident in India. Disclosing foreign income and assets not only ensures compliance with …

Missed reporting foreign assets in ITR? File revised return to avoid Rs 10 lakh penalty | DETAILS
1 month ago

Missed reporting foreign assets in ITR? File revised return to avoid Rs 10 lakh penalty | DETAILS

India TV News  

Taxpayers who have failed to declare foreign assets or income in their Income Tax Return for AY 2024-25 can file a revised return by December 31, 2024, to avoid a penalty of up to Rs 10 lakh. Revised return deadline announced The Tax Department has advised taxpayers that if the original ITR missed foreign assets or income, then file an …

Income tax department warns: ‘Declare foreign assets or pay ₹10 lakh penalty’
1 month ago

Income tax department warns: ‘Declare foreign assets or pay ₹10 lakh penalty’

Live Mint  

The Income-Tax department has today launched a new campaign warning taxpayers of ₹10 lakh penalty if they fail to disclose foreign held assets or income earned from abroad in their ITR, according to a PTI report. According to the I-T department advisory, for Indian residents a foreign asset would include bank accounts, cash value insurance contract or annuity contract, financial …

Failure to disclose foreign assets, income to invite ₹10 lakh penalty: I-T dept
1 month ago

Failure to disclose foreign assets, income to invite ₹10 lakh penalty: I-T dept

The Hindu  

The Income-Tax Department on Sunday cautioned taxpayers that failure to disclose assets held abroad or income earned in foreign shores in the ITR can attract a penalty of ₹10 lakh under the anti-black money law. The advisory specified that foreign asset, for a tax resident of India in the previous year, includes bank accounts, cash value insurance contracts or annuity …

Initiation Of Prosecution U/S 51 Of Black Money Act Not Dependent On Completion Of Assessment Proceedings U/S 10 For Tax Evasion: Delhi HC
1 month, 1 week ago

Initiation Of Prosecution U/S 51 Of Black Money Act Not Dependent On Completion Of Assessment Proceedings U/S 10 For Tax Evasion: Delhi HC

Live Law  

The Delhi High Court has held that initiation of prosecution under Section 51 of the Black Money Act, 2015 is not dependent on completion of assessment proceedings initiated against an accused under Section 10 to determine tax evasion. It is relevant to note that the assessment under the Black Money Act is being made under Section 10, which falls in …

Tax Monthly Digest: October 2024
1 month, 1 week ago

Tax Monthly Digest: October 2024

Live Law  

Kerala High Court Strikes Down Rule 96 of CGST Rules Retrospectively, Finds Them Ultra Vires To CGST Act The Kerala High Court struck down Rule 96 of the Central Goods and Service Tax Rules holding that it was ultra vires to the Section 16 of the Integrated Goods and Service Tax Act and was manifestly arbitrary. Condonation Of Delay Application …

Amendments in Black Money Act to remove penalty on undisclosed foreign assets worth ₹20 lakh: CBDT chief
4 months, 4 weeks ago

Amendments in Black Money Act to remove penalty on undisclosed foreign assets worth ₹20 lakh: CBDT chief

Live Mint  

Union Minister Nirmala Sitharaman tabled the Finance Bill in the parliament as part of the Union Budget 2024-25, which included an amendment to the Black Money Act. Central Board of Direct Taxes Chairman Ravi Agarwal stated on 25 July that the amendment in the Black Money Act would provide taxpayers relief from penalty when a situation arises if they fail …

Budget: Tax clearance certificate mandatory for leaving India
4 months, 4 weeks ago

Budget: Tax clearance certificate mandatory for leaving India

Hindustan Times  

The Budget has made the rules stricter for obtaining clearance certificates, which are needed to leave India. Starting October 1, anyone living in India will need a clearance certificate confirming they are clear under the Black Money Act. This requirement covers taxes under the Income-tax Act, as well as the former Wealth Tax, Gift Tax, and Expenditure Tax Acts. According …

The complex task of reporting foreign income
3 years ago

The complex task of reporting foreign income

Live Mint  

The enactment of the Black Money Act in 2015 instituted a notable makeover in income tax returns to envelop extensive disclosures capturing details of foreign assets and income, making the intent loud and clear. A resident taxpayer holding foreign assets or foreign interest at any time during the relevant accounting period needs to necessarily disclose the same in the ITR …

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