Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: list of goods taxed at 4% :: form 3cd :: empanelment :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARDS :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company
 
 
« Indirect Tax »
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017
 Why tax radar may detect your cash deposits after Nov 8
 Income tax notices to religious, charitable trusts
 ICAI starts course on accounting technicians
 More trouble ahead as Tata Trusts get I-T summons for tax avoidance

I-T dept wont verify foreign asset disclosures
June, 29th 2015

The income tax (I-T) department will take for granted the disclosures of hidden overseas wealth during the limited compliance period to be announced early this week under the new black money law. The persons using the window will not be asked any probing questions on whether the extent of such wealth reported by them during the period is an understatement.

The idea is to reassure potential subscribers that the compliance window of a few months was not a trap but a safe exit route from the liabilities of past offences. Accordingly, the responsibility to receive applications would not be with assessing officers, but with an officer not below the rank of a commissioner.

This is a significant departure from the service tax amnesty scheme of 2013, under which officers had the power to turn down amnesty requests for allegedly ‘dishonest’ disclosure, exposing the applicant to normal legal proceedings after the admission of guilt. What deters people from reporting tax-evaded wealth is the risk of the disclosure itself triggering further questions on its truthfulness and a possible opening up of the accounts of other years.

The black money law compliance scheme, instead, would be on the lines of the hugely successful Voluntary Disclosure of Income Scheme of 1998 that had accepted declarations of unaccounted wealth of more than R7,000 crore held by about 3.5 lakh people without any questions.

The compliance period offers a chance to avoid 120% penalty and three to seven years rigorous imprisonment, provided for in the Undisclosed Foreign Income and Assets (Imposition of Tax) Act brought in this year.

“There is no question of any scrutiny once 60% of the previously unreported wealth is offered for tax,” said a person familiar with the development. The person added that since those who sign up for the scheme are actually in possession of the wealth, there is no need for extra time to pay up after the limited compliance period.

However, protection from further questions and scrutiny would be limited to the amount of foreign income and assets disclosed during the compliance window. If the tax department comes to know through its information exchange agreements with other countries about any part of wealth that has not been covered by the disclosure made under the compliance window, that evasion could expose the person to the penalty provisions in the black money law, explained an official.

“The new black money law provides for a separate regime for taxation of undisclosed foreign income/asset which was not disclosed or reported under the Income Tax Act and which has come to the notice of the tax authority on or after 1 April 2015. The foreign income/asset detected by the tax authority before 1 April 2015 will continue to be governed by the income tax law,” explained Rajiv Chugh, tax partner at EY.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions