With the increasing cross border investment, there has been an inadvertent requirement for the changes in the provisions related to the Black Money Act, 2015 regarding the disclosure of foreign assets while filing the Income tax returns.
It has been noticed that while filing the Income tax returns, mostly people have acquired the foreign assets in the form of stocks of foreign company. In the section 42 and 43 respectively of the Black Money Act 2015, the provisions regarding the penalty of Rs. 10 Lakhs have been given if the resident being the person other than “Not ordinarily resident” in India, have failed to furnish details of foreign assets or income in their return of income or failed to disclose or furnish inaccurate information regarding an asset (including financial assets) being located outside the country.
The said provisions shall be applicable if the value of the foreign assets or income or beneficial interests in the foreign assets, having an aggregate value exceeds Rs. 5 Lakhs at any time during the previous year.
Keeping in view the suggestions received from the various stakeholders, the limit of Rs. 5 Lakhs have been increased to Rs. 20 Lakhs in the Finance (No. 2) Bill, 2024.
The said amendment shall be effective with effect from 1st October 2024.
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