Compliance Window Not to Apply If Proceedings Already on: Government

Published: 03rd July 2015 10:53 PM  |   Last Updated: 03rd July 2015 10:53 PM   |  A+A-


NEW DELHI: The government today said Indians against whom information has been received from foreign nations on overseas accounts or assets won't be eligible to use compliance window to make voluntary disclosures under the stringent new black money law.

In the explanatory notes issued on the 90-day one-time compliance window provided to foreign assets holders to come clean, the Finance Ministry said the facility will not be available for those against whom I-T Department has initiated proceedings before June 30 or has carried out searches.

Also, it will not be available for persons against whom any information has been received from foreign nations on or before June 30.

Indian government has received information regarding some its citizens having undisclosed foreign accounts in HSBC bank's Geneva branch and LGT Bank Liechtenstein.

In many of these cases, notices have been issued by the Tax Department, while in some prosecution has started.

The three categories of persons barred from availing the 'compliance window' ending September 30 include foreign account holders like some of the ones mentioned in the HSBC list against whom government has got information. They will not get immunity from the 120 per cent tax and penalty and up to 10 year jail term prescribed in the new law.

The benefit will not also accrue to those availing benefits under Double Taxation Avoidance Agreements (DTAAs) and Tax Information and Exchange Agreements (TIEA) with foreign countries and jurisdictions.

The disclosures made in the 90-day compliance window would attract 30 per cent tax and an equivalent amount of penalty, while escaping criminal prosecution and jail term.

For the purpose of assessing the value of bank deposits and assets abroad, the CBDT has issued a separate guideline detailing the parameters of valuing each of them.

The value in a bank account will be assessed by totalling all deposits made since opening while assets like immovable property, shares and jewellery will be valued at fair market price for levy of tax and penalty both during the compliance window and otherwise.


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