CBDT sticks to Black Money Act asset disclosure deadline

It seems the government is in no mood of extending the last date of the one-time disclosure window under the Black Money Act.

In an press release issued by the Central Board of Direct Tax (CBDT), the department has advised people with undisclosed foreign assets "to file their declarations well in time" and reiterated that "failure to declare an undisclosed foreign asset will entail severe consequences under the Act, including higher penalty, prosecution, and may also result in forfeiture of assets under the Prevention of Money Laundering Act."

The window, which closes on 30 September 2015, provides a one-time opportunity for residents with undisclosed foreign assets to declare their assets to the tax authorities, pay a 60 per cent tax on them and get immunity from prosecution under Income-tax Act, Wealth Tax, FEMA, Companies Act and Customs Act.

Most tax experts were expecting an extension of the deadline given clarifications were coming till early September.

"The deadline of disclosure is very short. The second set of FAQs came on 3 September. So, people took time to understand the law, and given the kind of detailing and the information is required I would say the time is very short," says Krishan Malhotra, head of tax practices, Shardul Amarchand Mangaldas.

In fact, most tax and legal experts Business Today talked to said that the response so far has been lukewarm and unless the deadline for disclosure window is extended, the quantum of disclosure would be very low.

Meanwhile, the CBDT has rubbished the reports of harassment by tax authorities of people who have disclosed assets under disclosure window.  

"The fears of harassment of the declarants expressed in certain fora are unfounded," says the press release.