While the Government is hell-bent on bringing back black money stashed abroad and is even bringing a legislation for this purpose, highly placed sources have confirmed that a short duration window period will be given to Indians holding black money in foreign-based bank accounts to declare their illegal assets.
Revenue Secretary Shaktikant Das confirmed to The Pioneer that the window period, which will not be any kind of an amnesty offer, will be of a short duration, consisting of a few months. He, however, informed that all the necessary punitive measures against those concealing overseas income, evading tax and failing to file return, as well as indulging in inadequate disclosure of foreign assets, will be the same as mentioned by Finance Minister Arun Jaitley in his Budget speech on February 28.
Even if the account holders declare the black money in accounts held abroad during the window period, fine or penalty will be imposed on them, sources informed. However, they won’t be prosecuted, or in other words, imprisoned. Meanwhile, sources aware of the development said that all those overseas bank accounts whose relevant details are not provided during the window period could be declared as concealed accounts and punitive action will be taken against them later on. These accounts are likely to be frozen.
At the same time they further pointed out that the provision of prosecution like imprisonment will be applicable on those account holders who fail to provide the required information even after the expiry of the window period. The Government has made it clear that the window period is not going to be any kind of an amnesty scheme for such account holders. Apart from this, the Government will soon be introducing the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015 in Parliament, which carries stringent provisions for prosecution of black money stashed abroad, including rigorous imprisonment of up to 10 years.
Besides enacting the new law, the efforts to curb black money include changes in the Benami Transaction Act and restrictions on acceptance of cash beyond Rs20,000 as advance for real estate transactions, as was mentioned in the Union Budget. While unveiling his Budget proposals, Jaitley had said that “tracking down and bringing back the wealth, which legitimately belongs to the country, is our abiding commitment to the country”.