Having been deluged with queries from professionals regarding the implication of the new law for them, the lack of clarity and paucity of time are the two main challenges facing the implementation of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The Act, enacted after high-pitched politicking, deals with the menace of black money stashed abroad and provides stringent punishment of up to 10 years rigorous imprisonment and penalty of 90 per cent along with 30 per cent tax for wilful attempt to evade tax on assets held abroad by a resident.
While the Central Board of Direct Taxes (CBDT) issued frequently asked questions (FAQs) laying down the conditions and situations that may arise during the course of implementation of the Act and availing of the compliance window, several concerns are stemming due to ambiguity in the FAQs.
The Act puts reporting obligations on tax payers who are earning abroad and acquiring assets through legitimate funds.
