New Delhi: The amnesty provisions in the proposed legislation to bring back ill-gotten money stashed away by Indians abroad will allow a perpetrator to retain only 40 percent of the overseas asset if declared within the stipulated time.
In the chapter on tax compliance for undisclosed foreign income and assets, Section 60 provides for a tax to be charged at 30 percent of the undisclosed assets outside India that has been since declared under the act.
Section 61 additionally provides for a penalty at the rate of 100 percent of such tax, taking the effective rate of tax, plus penalty, to 60 percent of the declared asset, leaving room for people to retain only some of such money.
The are also other provisions in the so-called amnesty scheme of what is officially called the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 that was tabled by the government in the Lok Sabha on March 20, hours before the recess of the Budget session:
– Amnesty will apply from the commencement of the act till a specific notified date
– Entire tax and penalty has to be paid before the expiry of notified date
– Once a declaration has been made, no further declaration is permitted
– If a subsequent declaration is made, it will be deemed void
– If tax and penalty is not paid within stipulated time, declaration will not be considered
– If tax, penalty is paid on declared asset, it won’t be be taxed again during that year
– Declared asset can’t be opened for re-assessment
– Once an asset is declared, immunity granted from using it as evidence in other cases.
Otherwise, under the proposed legislation a person who has not applied for amnesty and is held guilty for evading taxes and parking such money abroad, faces rigorous imprisonment up to a maximum of 10 years and a penalty of 300 percent of taxes on the concealed assets.