Disclose foreign income, assets by Sept 30

The government announced a three-month window till September 30 as one last chance for declaration of undisclosed foreign income and assets to escape prosecution under the new black money law on Wednesday.

Those who declare their income and assets within this three-month time frame will be required to pay tax and penalty on such funds till December 31. Those availing the one-time compliance window would be required to pay a tax of 30 per cent and a penalty of 30 per cent as well.

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Under the new black money law, which would come into force from April 1, 2016, the penalty would be much higher at 90 per cent in addition to a 30 per cent tax on undisclosed foreign assets while such persons would also face criminal prosecution with a jail term of up to ten years.

The finance ministry said in a statement that it has notified the three-month compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Those making the disclosure during this period would get another three months' time till December 31 to pay the taxes and the penalty on their foreign income and assets.

"The last date by which a person must pay the tax and penalty in respect of the undisclosed foreign assets so declared shall be the December 31, 2015," the statement said. The Act provides for separate taxation of undisclosed foreign income and assets. Stringent penalties and prosecution, including rigorous imprisonment up to 10 years and penalty equal to three times the tax have been prescribed for violation, the statement added.