Earlier this year, the government notified and brought into effect the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black Money Act). One important aspect of the Black Money Act is the “one-time compliance window” offered to persons who have undisclosed assets overseas, under the compliance scheme in chapter VI. Such persons can declare their undisclosed assets and come clean by paying an aggregate of 60% of those assets as tax and penalty.
In exchange, no further prosecution will be launched against them under the act. In order to provide clarification on several unclear aspects related to the compliance scheme, the Central Board of Direct Taxes issued a circular dated 6 July with clarifications to frequently asked questions. Some of the key clarifications are:
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.