Parliament Passes Black Money Bill

13 May, New Delhi

The Parliament Wednesday gave its seal of approval to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015, with the Rajya Sabha returning it this evening.
The bill provides for dealing with undisclosed foreign income and assets besides imposition of Tax on such income and assets held outside the country. The bill was passed by the Lok Sabha on Monday.

Replying to the discussion on the Bill, Finance Minister Arun Jaitley clarified that the Bill doesn’t deal with black money within the country, but to resident tax payers who have undisclosed income or assets abroad.
He said, under the Bill, a compliance period and a window will be provided to persons willing to disclose their income. They will be charged 30 per cent tax and 30 per cent penalty. However, if they fail utilise this opportunity within the stipulated time, they will be liable to pay 30 per cent tax, 90 per cent penalty and will also have to face prosecution.
The Minister further clarified that the provisions are not for providing amnesty to tax evaders. Allaying apprehensions expressed by members Jaitley said the new law will apply only to those having more than Rs 5 lakh in their foreign accounts.

Jaitley said the world will not tolerate black money held in tax havens with G-20 countries agreeing on real-time automatic exchange of information on financial transactions, which is set to materialise by 2017.