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E- wallet and virtual card accounts to be disclosed under the new black money law

The Central Board of Direct Taxes has issued clarifications under the new black money law to disclose the e-wallet and virtual card accounts.

The department has provided a one time compliance window under the new black money law passed by the parliament for those who have unaccounted foreign assets are required to come clean upto 30th September.

They would have to pay 30 per cent tax and 30 per cent penalty on the asset declared before December 31 but after September 30, 2015.

This has been clarified latest that Indian companies that made payments to their overseas employees, deposited in undisclosed bank accounts, without deducting tax, would face penalty. Private trustees, even nonresidents, holding assets on behalf of beneficial owners would be able to make declaration under the compliance window unveiled by the new law.

Settlor of the overseas trust can also make a declaration. In case of minor beneficial owners, the guardians will have to make the declaration.

Professionals who worked overseas and are now resident in India will have to disclose their pension account and all accretion to the account. All accretion to the account will be chargeable to tax here in India.

Non-declaration of these accounts could attract penalty and may even lead to imprisonment under the black money law.

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