The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

(1) This Act may be called the Black Money(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. (2) It extends to the whole of India. (3) Save as otherwise provided in this Act, it shall come into force on the 1st day of April, 2016.

In this Act, unless the context otherwise requires, (1) "Appellate Tribunal" means the Appellate Tribunal constituted under section 252 of theIncome-tax Act; (2) "assessee" means a person, being a resident other than not ordinarily resident in India withinthe meaning of clause (6) of section 6 of the Income-tax Act, by whom tax in respect of undisclosedforeign income and assets, or any other sum of money, is payable under this Act and includes everyperson who is deemed to be an assessee in default under this Act; (3) "assessment" includes reassessment; (4) "assessment year" means the period of twelve months commencing on the 1st day of Aprilevery year; (5) "Board" means the Central Board of Direct Taxes constituted under the Central Boards ofRevenue Act, 1963 (54 of 1963); (6) 'Income-tax Act" means the Income-tax Act, 1961 (43 of 1961); (7) "participant" means (a) a partner in relation to a firm; or (b) a member in relation to an association of persons or body of individuals; (8) "prescribed' means prescribed by rules made under this Act; (9) "previous year" means (a) the period beginning with the date of setting up of a business and ending with the date ofthe closure of the business or the 31st day of March following the date of setting up of suchbusiness, whichever is earlier; (b) the period beginning with the date on which a new source of income comes into existenceand ending with the date of closure of the business or the 31st day of March following the date onwhich such new source comes into existence, whichever is earlier; (c) the period beginning with the 1st day of the financial year and ending with the date ofdiscontinuance of the business other than business referred to in clause (b) or dissolution of anunincorporated body or liquidation of a company, as the case may be; or (d) the period of twelve months commencing on the 1st day of April of the relevant year inany other case, and which immediately precedes the assessment year. (10) "resident" means a person who is resident in India within the meaning of Section 6 of theIncome-tax Act; (11) "undisclosed asset located outside India" means an asset (including financial interest in anyentity) located outside India, held by the assessee in his name or in respect of which he is a beneficialowner, and he has no explanation about the source of investment in such asset or the explanationgiven by him is in the opinion of the Assessing Officer unsatisfactory; (12) "undisclosed foreign income and asset" means the total amount of undisclosed income of anassessee from a source located outside India and the value of an undisclosed asset located outsideIndia, referred to in section 4, and computed in the manner laid down in Section 5; (13) "unincorporated body" means (a) a firm; (b) an association of persons; or (c) a body of individuals; (14) "value of an undisclosed asset" shall have the meaning assigned to it in sub-section (2) ofSection 3; (15) all other words and expressions used herein but not defined and defined in the Income-taxAct shall have the meanings respectively assigned to them in that Act.

(1) There shall be charged on every assessee for every assessment yearcommencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect ofhis total undisclosed foreign income and asset of the previous year at the rate of thirty per cent. of suchundisclosed income and asset: Provided that an undisclosed asset located outside India shall be charged to tax on its value in theprevious year in which such asset comes to the notice of the Assessing Officer. (2) For the purposes of this section, "value of an undisclosed asset" means the fair market value of anasset (including financial interest in any entity) determined in such manner as may be prescribed.

(1) Subject to the provisions of this Act,the total undisclosed foreign income and asset of any previous year of an assessee shall be, (a) the income from a source located outside India, which has not been disclosed in the return ofincome furnished within the time specified in Explanation 2 to sub-section (1) or undersub-section (4) or sub-section (5) of section 139 of the Income-tax Act; (b) the income, from a source located outside India, in respect of which a return is required to befurnished under section 139 of the Income-tax Act but no return of income has been furnished withinthe time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) ofsection 139 of the said Act; and (c) the value of an undisclosed asset located outside India. (2) Notwithstanding anything contained in sub-section (1), any variation made in the income from asource outside India in the assessment or reassessment of the total income of any previous year, of theassessee under the Income-tax Act in accordance with the provisions of section 29 to section 43C orsection 57 to section 59 or section 92C of the said Act, shall not be included in the total undisclosedforeign income. (3) The income included in the total undisclosed foreign income and asset under this Act shall notform part of the total income under the Income-tax Act.

(1) In computing the totalundisclosed foreign income and asset of any previous year of an assessee, (i) no deduction in respect of any expenditure or allowance or set off of any loss shall be allowedto the assessee, whether or not it is allowable in accordance with the provisions of the Income-taxAct; (ii) any income, (a) which has been assessed to tax for any assessment year under the Income-tax Act prior tothe assessment year to which this Act applies; or (b) which is assessable or has been assessed to tax for any assessment year under this Act, shall be reduced from the value of the undisclosed asset located outside India, if, the assessee furnishesevidence to the satisfaction of the Assessing Officer that the asset has been acquired from the incomewhich has been assessed or is assessable, as the case may be, to tax. (2) The amount of deduction referred to in clause (ii) of sub-section (1) in case of an immovableproperty shall be the amount which bears to the value of the asset as on the first day of the financial yearin which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessedforeign income bears to the total cost of the asset. Illustration A house property located outside India was acquired by an assessee in the previous year 2009-10 forfifty lakh rupees. Out of the investment of fifty lakh rupees, twenty lakh rupees was assessed to tax in thetotal income of the previous year 2009-10 and earlier years. Such undisclosed asset comes to the notice ofthe Assessing Officer in the year2017-18. If the value of the asset in the year 2017-18 is one crore rupees,the amount chargeable to tax shall be A-B= C where, A = Rs.1 crore, B = Rs. (100 � 20/50) lakh = Rs.40 lakh, C = Rs. (100-40) lakh = Rs.60 lakh.