Government has notified the rules for calculating overseas income and assets under the Black Money (Undisclosed Foreign Income and Assets)and Imposition of Tax Act, 2015 that came into force on 1st of this month.
The rules notified by Central Board of Direct Taxes, CBDT said the value of the overseas assets, including immovable property, jewellery, archaeological collections and paintings, shares and securities and shares in unlisted firms abroad will be calculated at the fair market value. According to the new rules, the value of an overseas bank account will be the sum of all deposits made in the account since its opening.
The black money law provides for a total of tax and penalty of 120 per cent on the income or assets held abroad after the expiry of a one-time 90-day compliance window provided for persons to come clean. Any income or asset declared during this period, which ends on 30th of September, would attract a total of 60 per cent tax and penalty, without penal provisions like jail term. They will have time till December 31 to pay the levies.