The Lok Sabha on 11th May 2015 passed a stringent law to unearth black money stashed overseas, putting in strong deterrent for those who do not come clean in a one-time window being provided under the law and declared unaccounted foreign wealth. India and other G-20 members have committed to a global framework on automatic information exchange. It will also receive information on assets held by its citizens from the US under FATCA.
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- Date of Passing in Lok Sabha: 11th May 2015
- The bill provides for rigorous imprisonment of up to 10 years for offenders.
- There would be short compliance window for persons having undisclosed income abroad to come clean by paying 30 per cent tax and 30 per cent penalty.
- The duration of the window would be notified separately once the bill gets approval of Parliament.
- There could be a two-month window to declare overseas assets and within six months one would have to pay tax and penalty.
- No action would be taken against persons having Rs 5 lakh or equivalent amount in their overseas bank accounts.