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Date: 2015-07-01 Category: Extra Ordinary State: Union Government Country: India

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) (hereinafter referred to as the Act) received the assent of the President on 26th May, 2015

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

Executive Summary: This order addresses difficulties in interpreting the "Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015" (the Act). It clarifies the date of commencement of the Act, particularly concerning provisions related to undisclosed foreign assets. This order substitutes "1st day of July, 2015" for "1st day of April, 2016" in subsection 3 of Section 1 of the Act, impacting the timeline for declaration and taxation of undisclosed foreign assets. The order comes into force on the date of its publication in the Official Gazette. Key Points / Main Content: * **Commencement Date Clarification:** * The order addresses the interpretation of the commencement date of the Act to ensure provisions of Section 59 and Section 60 are effectively implemented. * Replaces "1st day of April, 2016" with "1st day of July, 2015" in subsection 3 of Section 1 of the Act. * **Legislative Context:** * The Act received Presidential assent on May 26, 2015. * Section 3(1) addresses tax on undisclosed foreign income and assets for assessment years beginning on or after April 1, 2016. * Section 59 allows declaration of undisclosed foreign assets acquired from income chargeable to tax under the Income-tax Act, 1961, for assessment years prior to April 1, 2016. * Section 60 addresses tax on undisclosed foreign assets declared under Section 59, based on the asset's value on the Act's commencement date. * **Order Details:** * The order is called the "Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act Removal of Difficulties Order, 2015." * It is issued by the Central Government, exercising powers conferred by subsection 1 of Section 86 of the Act. Impact Analysis: **Central Government:** * Impact: Responsible for implementing and enforcing the Act based on the clarified commencement date. * Action Required: Ensure all relevant departments and officials are aware of the change in commencement date and its implications for tax collection and enforcement. **Taxpayers with Undisclosed Foreign Assets:** * Impact: Need to be aware of the revised commencement date for the Act, which affects the declaration and taxation of their undisclosed foreign assets. * Action Required: Review their foreign assets and income, and take necessary steps to comply with the Act's provisions, considering the new commencement date of July 1, 2015. **Tax Authorities:** * Impact: Must adjust their procedures and timelines to align with the clarified commencement date for assessing and taxing undisclosed foreign assets. * Action Required: Update assessment and enforcement strategies to reflect the change from April 1, 2016, to July 1, 2015, as the commencement date.

Key Entities Referenced

New Delhi: The capital city of India where the order was issued. Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015: A law enacted in 2015 by the Parliament of India to address the issue of undisclosed foreign income and assets. Section 59: Section of the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 relating to declaration of undisclosed foreign asset. Section 60: Section of the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 providing for charging of tax on undisclosed foreign asset declared under Section 59. Section 86: Section of the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 that confers powers to the Central Government to remove difficulties in implementing the Act. Income-tax Act, 1961: An act of the Parliament of India. Central Board of Direct Taxes: A government body under the Department of Revenue, Ministry of Finance, responsible for direct tax administration in India. Amit Katoch: Under Secretary, Ministry of Finance, Department of Revenue.
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L.-33004/99 vlk/kj.k EXTRAORDINARY Hkkx II—[k.M 3—mi&[k.M (ii) PART II—Section 3—Sub-section (ii) izkf/dkj ls izdkf'kr PUBLISHED BY AUTHORITY la- 1409] ubZ fnYyh] cq/okj] tqykbZ 1] 2015@ vk"kk<+ 10] 1937 No. 1409] NEW DELHI, WEDNESDAY, JULY 1, 2015/ASHADHA 10, 1937 ििििवववव (cid:1)(cid:1) (cid:1)(cid:1) तत त त मममम(cid:6)(cid:6)ंं(cid:6)(cid:6)ंं ााााललललयययय ((((ररररााााजजजज(cid:4)(cid:4)(cid:4)(cid:4)वव वव ििििवववव भभ भभाााागगगग)))) ((((ककककेेेे(cid:10)(cid:10)(cid:10)(cid:10)(cid:11)(cid:11) (cid:11)(cid:11) ीीीीयययय (cid:14)(cid:14)(cid:14)(cid:14)(cid:15)(cid:15)(cid:15)(cid:15)यय यय (cid:16)(cid:16)(cid:16)(cid:16) ककककरररर बबबबोोोोडडडड))(cid:20)(cid:20)))(cid:20)(cid:20) आआआआददददशशेेशशेे नई (cid:4)द (cid:6) ली, 1 जुलाइ(cid:15), 2015 ककककाााा....आआआआ.... 1111777799990000((((अअअअ))))....————काला धन (अ(cid:23)क(cid:24)टत िव दशे ी आय और आि!त ) और कर अिधर ोपण अिध िन यम, 2015 (2015 का 22) (िज से इसम% इसके प’च ात ् अिधि नय म कहा गया ह)ै को रा)* पित क+ अनुमित 26 मई, 2015 को िम ल गई ह;ै और अिध िनय म क+ धारा 1 क+ उपधारा (3) म% यह उपबंिध त ह ै(cid:4)क अिधि नय म म%, जैसा अ2य था उपबंिध त ह,ै उसके िस वाय, अिध िन यम 1 अ(cid:23)ैल, 2016 को (cid:23)वृ6त होगा; और अिध िनय म क+ धारा 3 क+ उपधारा (1) म% 1 अ(cid:23)ैल, 2016 को या उसके प’च ात् (cid:23)ारंभ होने वाल े (cid:23)6य के िनध ा(cid:15)रण वष(cid:15) के िल ए अ(cid:23)क(cid:24)ट त िवद शे ी आय और आि!त पर कर के (cid:23)भारण का उपबंध ह;ै और अिध िनय म क+ धारा 3 क+ उपधारा (1) के अधीन, 1 अ(cid:23)ैल, 2016 को या उसके प’च ात् (cid:23)ारंभ होन े वाले (cid:23)6य के िनध ार(cid:15) ण वष (cid:15) स े सुसगं त पूवव(cid:15) ष (cid:15) क+ अ(cid:23)क(cid:24)टत िव दशे ी आय और आि!त अिधि नय म के अधीन कर स े (cid:23)भाय(cid:15) ह;ै और अिध िनय म क+ धारा 2 के खंड (9) म% यथाप(cid:24)र भािष त ''पूवव(cid:15) ष(cid:15)'' से िन धा(cid:15)रण वष(cid:15) के ठीक पूव(cid:15) क+ बारह मास क+ अविध अिभ(cid:23) ेत ह;ै और अ(cid:23)क(cid:24)ट त िव दशे ी आि!त क+ घोषणा से संबंिधत अिधि नय म क+ धारा 59 म% (cid:4)क सी Dय िEत Fारा इस अिधि नय म के (cid:23)ारंभ क+ तारीख को या उसके प’च ात् Hकतु के2I ीय सरकार Fारा राजपJ म% अिधस ूिचत क+ जान े वाली तारीख को या उसके पहले, भारत के बाहर अवि!थ त और 1 अ(cid:23)ैल, 2016 को (cid:23)ारंभ होने वाले िन धा(cid:15)रण वष(cid:15) 2918 GI/2015 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] से पूव (cid:15) के (cid:4)क सी िनध ा(cid:15)रण वष (cid:15) के िल ए, आय-कर अिधि नय म, 1961 (1961 का 43) के अधीन कर से (cid:23)भाय(cid:15) आय से अKजत (cid:4)क सी अ(cid:23)क(cid:24)ट त आि!त के संबंध म % घोषणा (cid:4)कए जान े का उपबंध ह;ै और अिध िनय म क+ धारा 60 म%, धारा 59 के अधीन घोिषत अ(cid:23)क(cid:24)टत िव दशे ी आि!त पर अिध िन यम के (cid:23)ारंभ क+ तारीख को ऐसी आि! त के ewY; पर कर के (cid:23)भारण का उपबंध ह;ै और संसद ् Fारा पा(cid:24)र त अिध िनय म को रा)* पित क+ अनुमित 26 मई, 2015 को (cid:23)ाOत Pई ह,ै अत: इस अिधि नय म के उपबंधR को, इस तS य को िवच ार म% िल ए िब ना (cid:4)क 1 अ(cid:23)ैल, 2016 को (cid:23)ारंभ होने वाला िन धा(cid:15)रण वष(cid:15) 1 अ(cid:23)ैल, 2015 को (cid:23)ारंभ होने वाल े पूवव(cid:15) ष(cid:15) स े सबं ंिधत ह,ै 26 मई, 2015 के पूव(cid:15) (cid:23)भावी नहT (cid:4)कय ा जा सकता ह;ै ''अिध िनय म के (cid:23)ारंभ क+ तारीख'' पद का िनवच(cid:15) न करने म% और अिधि नय म क+ धारा 59 और धारा 60 के उपबंधR को (cid:23)भावी करने म % क(cid:24)ठ नाई उ6 प2न Pई ह,ै िज सका (cid:4)क अथा(cid:15)2व यन 1 अ(cid:23)ैल, 2016 के Uप म% (cid:4)क या जा सकता ह,ै जब(cid:4)क अिध िनय म के अधीन कर क+ (cid:23)भाय(cid:15)ता 1 अ(cid:23)ैल, 2015 को या उसके प’च ात् (cid:23)ारंभ होने वाल े पूव(cid:15)वष (cid:15) स े सुसंगत 1 अ(cid:23)ैल, 2015 को या उसके प’च ात् (cid:23)ारंभ होने वाल े िन धा(cid:15)रण वष(cid:15) के िलए ह;ै अत:, अब, के2 Iीय सरकार अिध िनय म क+ धारा 86 क+ उपधारा (1) Fारा (cid:23)द6त शिEत यR का (cid:23)योग करत े Pए पूवVEत क(cid:24)ठ नाइयR को दरू करने के िलए िन Wन िलि खत आदशे करती ह,ै अथा(cid:15)त:् -- 1. ससससंिंिंिंि(cid:12)(cid:12)(cid:12)(cid:12) (cid:13)(cid:13)(cid:13) (cid:13)तत तत ननननाााामममम औऔऔऔरररर (cid:17)(cid:17)(cid:17)(cid:17)ााााररररंंंंभभभभ-- (1) इस आदेश का संिX Oत नाम काला धन (अ(cid:23)क(cid:24)टत िव दशे ी आय और आि! त ) और कर अिधर ोपण (क(cid:24)ठ नाइयR का दरू (cid:4)कय ा जाना) आदशे , 2015 ह ै। (2) यह राजपJ म% उसके (cid:23)काशन क+ तारीख को (cid:23)वृ6त होगा । 2. काला धन (अ(cid:23)क(cid:24)ट त िवद शे ी आय और आि!त य ां) और कर अिधर ोपण अिधि नय म, 2015 (2015 का 22) क+ धारा 1 क+ उपधारा (3) म% ''1 अ(cid:23)ैल, 2015'' अंकR और शYद R के !थ ान पर ''1 जुलाई, 2015'' अंक और शY द रखे जाएगं े। [अिधस ूचना स.ं 56/2015/फा. सं. 133/33/2015-टीपीएल] अिमत कटोच, अवर सिच व MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) ORDER New Delhi, the 1st July, 2015 S.O. 1790(E).—Whereas the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) (hereinafter referred to as the Act) received the assent of the President on 26th May, 2015; And whereas sub-section (3) of Section 1 of the Act provides that save as otherwise provided in the Act, the Act shall come into force on the 1st day of April, 2016; And whereas sub-section (1) of Section 3 of the Act provides for charging of tax on undisclosed foreign income and asset for every assessment year beginning on or after the 1st day of April, 2016; And whereas under sub-section (1) of Section 3 of the Act, undisclosed foreign income and asset of the previous year relevant to the assessment year commencing on or after the 1st day of April, 2016 is chargeable under the Act; And whereas the ‘previous year’ as defined in clause (9) of Section 2 of the Act means a period of twelve months immediately preceding the assessment year; And whereas section 59 of the Act relating to declaration of undisclosed foreign asset provides for making declaration by any person, on or after the date of commencement of the Act but on or before a date to¹Hkkx IIµ[k.M 3 (ii)º Hkkjr dk jkti=k % vlk/kj.k 3 be notified by the Central Government in the Official Gazette, in respect of any undisclosed asset located outside India and acquired from income chargeable to tax under the Income-tax Act, 1961 (43 of 1961) for any assessment year prior to the assessment year commencing on the 1st day of April, 2016; And whereas Section 60 of the Act provides for charging of tax on undisclosed foreign asset declared under Section 59 on the value of such asset on the date of commencement of the Act; And whereas the Act passed by the Parliament received the assent of the President on the 26th day of May, 2015 and therefore the provisions of this Act cannot be given effect prior to the 26th day of May, 2015 irrespective of the fact that the assessment year beginning on the 1stday of April, 2016 relates to the previous year commencing on the 1st day of April, 2015; And whereas a difficulty has arisen in interpreting the expression‘date of commencement of the Act’and giving effect to the provisions of Section 59 and Section 60 which may be construed as 1st day of April, 2016, whereas the chargeability of tax under the Act is for assessment year commencing on or after the 1st day of April, 2016 relevant to the previous year commencing on or after the 1st day of April, 2015; Now, therefore, in exercise of the powers conferred by sub-section (1) of Section 86 of the Act, the Central Government hereby makes the following Order to remove the aforesaid difficulties, namely:- 1. Short title and commencement.- (1) This Order may be called the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (Removal of Difficulties) Order, 2015. (2) It shall come into force on the date of its publication in the Official Gazette. 2. In sub-section (3) of Section 1 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015), for the words, figures and letters “the 1st day of April, 2016”, the words, figures and letters “the 1st day of July, 2015” shall be substituted. [Notification No. 56/2015/F. No. 133/33/2015-TPL] AMIT KATOCH, Under Secy. Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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