Disclosures made under the four- month domestic black money compliance window beginning June 1 will not get immunity from criminal offences like corruption, or fraud under IPC, although there will be no scrutiny of the declarations under the I-T Act.
Such declarations will have immunity from prosecution for non-disclosure of wealth under Wealth Tax and certain provisions of Benami Transaction (Prohibition) Act.
However, the Indian Penal Code (IPC) offences will apply if the undeclared wealth was acquired through criminal means, sources told the news agency.
The formula for computing the ‘fair market value’ of the assets being disclosed would be provided by the Income Tax department through an explanatory circular.
The sources further said disclosures made during the compliance window will be entitled to the indexation benefits on resale of assets.
Indexation, while calculating the incidence of capital gains, is used to assess the value of the asset at the time of sale after discounting inflationary impact.
The Government had last year come out with a three-month compliance window for foreign black money holders. Disclosures under that window enjoyed immunity from I-T Act, Customs Act, Wealth Tax Act, Companies Act, FEMA and Prevention of Money laundering Act (PMlA).