Tax Department to Clarify on Bank Account Disclosures Under Black Money Law: Report
August, 18th 2015
Finance Ministry in the second set of FAQs on the black money compliance window is likely to clarify on the period for which foreign bank account details have to be provided after concerns were expressed in some quarters over the availability of records beyond a few years.
In the Frequently Asked Questions (FAQs) the Central Board of Direct Taxes (CBDT) will answer around two dozen queries based on inputs received from various stakeholders since the notification of the Compliance Window under the Black Money Act on July 1.
"Tax department has received queries with regard to disclosure of bank accounts. Many people are saying that they do not have details of the foreign bank account since its opening," a source told PTI.
As per the rules released by the Income Tax department in July, CBDT had asked persons having undisclosed foreign bank accounts to provide sum total of credits since the opening of the account.
The source said that some stakeholders have raised an issue that if someone has account for long, say 20-30 years, how will that person provide details for that period.
"Most of the time people do not keep record of bank passbooks for that long and banks too might not provide printed details for such a long period of time," the source said.
A clarification in this regard is likely in the second set of FAQs which will be released shortly.
The 90-day compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, that ends on September 30, provides opportunity to people to disclose their unaccounted wealth, pay 60 per cent tax and penalty and come clean. They will have time till December 31 to pay the tax and penalty.
Prime Minister Narendra Modi in his Independence Day speech had said that Rs 6,500 crore of unaccounted overseas wealth has already been disclosed by persons having unaccounted assets abroad.
The Income Tax department, the source said, has also received queries from professionals who have stayed abroad for some years and enrolled in social security schemes of foreign countries.
"Further clarity would be provided on the queries we have received following stakeholder consultation as well as through e-mails and letters. The FAQs would comprise of around 20-25 questions," the source added.
In the first set of FAQs released on July 6, the CBDT had answered 32 questions on various aspects of the black money law.