Govt will not extend black money compliance window beyond Sept 30
Updated: Sep 22, 2015 05:04:19pm
New Delhi, Sept 22 (KNN) Government will not extend the window for declaration of black money assets held abroad beyond September 30, said Joint Secretary, Central Board of Direct Taxes (CBDT), Ministry of Finance, V Anandarajan.
While inaugurating the conference on ‘Black Money Act: Ignorance is not Bliss! - Key aspects that everyone should know,’ organised by ASSOCHAM, he said that the three month window for voluntary disclosure without criminal liability was enough to make affected people aware of the provision.
On the issue of accidental discovery of funds abroad left by parents or as part of beneficiary funds, Anandarajan pointed out that the criminal liability was the same as in the provision of such discovery in the Income Tax Act.
In any case the Government has kept a threshold limit of Rs 5 lakhs for such accidental discovery that will not be penalized, he added.
Describing the Black Money legislation as a pretty touch Act, Anandarajan said that the window was provided specifically due to this. He assured that the senior officers would be dealing with the implementation to avoid any misuse.
The provision for confiscation of discovered black money and assets abroad would be the same as in the Prevention of Money Laundering Legislation, he said.
He also pointed out that the purpose behind the legislation was not so much to increase revenue but to get back what was denied to government so far and ensure a healthy compliance environment with the law.
On the question of black money generated domestically and in the country, the ministry official said the legislation was with the Parliament and the separate law for this would come into force when it is passed by it. He recalled in answer to several questions that penalties envisages under the black money law were similar to penal actions stated in several other legislations also.
“If the affected party claims that he was not aware of an account opened by abroad, this could not be conceded,” he said.
As for foreign accounts held by non-residents while they were still residing India, non-disclosure would be an offence. But under the double taxation avoidance treaties with a large number of countries that India has, non-residents who pay tax in the country of their normal residence would be protected by these treaties.
He also recalled that the government had already issued two instalments of clarifications on various questions posed by the public and was still open to assist where further clarifications were needed on the provisions. (KNN Bureau)
While inaugurating the conference on ‘Black Money Act: Ignorance is not Bliss! - Key aspects that everyone should know,’ organised by ASSOCHAM, he said that the three month window for voluntary disclosure without criminal liability was enough to make affected people aware of the provision.
On the issue of accidental discovery of funds abroad left by parents or as part of beneficiary funds, Anandarajan pointed out that the criminal liability was the same as in the provision of such discovery in the Income Tax Act.
In any case the Government has kept a threshold limit of Rs 5 lakhs for such accidental discovery that will not be penalized, he added.
Describing the Black Money legislation as a pretty touch Act, Anandarajan said that the window was provided specifically due to this. He assured that the senior officers would be dealing with the implementation to avoid any misuse.
The provision for confiscation of discovered black money and assets abroad would be the same as in the Prevention of Money Laundering Legislation, he said.
He also pointed out that the purpose behind the legislation was not so much to increase revenue but to get back what was denied to government so far and ensure a healthy compliance environment with the law.
On the question of black money generated domestically and in the country, the ministry official said the legislation was with the Parliament and the separate law for this would come into force when it is passed by it. He recalled in answer to several questions that penalties envisages under the black money law were similar to penal actions stated in several other legislations also.
“If the affected party claims that he was not aware of an account opened by abroad, this could not be conceded,” he said.
As for foreign accounts held by non-residents while they were still residing India, non-disclosure would be an offence. But under the double taxation avoidance treaties with a large number of countries that India has, non-residents who pay tax in the country of their normal residence would be protected by these treaties.
He also recalled that the government had already issued two instalments of clarifications on various questions posed by the public and was still open to assist where further clarifications were needed on the provisions. (KNN Bureau)
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