INTRODUCTION
BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015
APPLICABILITY & DEFINITIONS (SECTIONS 1 & 2)
CHARGE, SCOPE & COMPUTATION OF
APPEAL & REVISION (SECTIONS 15 TO 29)
RECOVERY OF TAX & INTEREST (SECTIONS 30 TO 40) 7.1
PENALTIES (SECTIONS 41 TO 47)
APPENDIX
VALUATION
APPENDICES
previous year in which the undisclosed asset located outside India was acquired.
‘Assessee’ means a person being a resident other than non-ordinarily resident in India within the meaning of clause of section 6 of the Income Tax Act by whom tax in respect of undisclosed foreign income and assets, or any other sum of money, is payable under this Act and includes every person who is deemed to be an assessee in default under this Act.
inter alia,
i.e.
(ii) Purpose of amendment in the definition of ‘Assessee’
(iii) Applicable from which Assessment year?
i.e.
(iv) “Total Undisclosed Foreign Income and Assets of the Previous Year” -
b i in transitu
Para 3.3
ii in transitu
c d e i ii f
g h
i j k l m ex delicto
3.3
(viii) Value of undisclosed foreign asset
Rashesh Manhar Bhansali v. Addl. CIT [2021] 132 taxmann.com 20/[2022] 193 ITD 141 (Mum. - Trib.)
“Rule 3(1)( ) of BMA provides that for the purposes of chargeability of tax under section 3(2), the fair market value of an account with a bank shall be, ( ) the sum of all the deposits made in the account with the bank since the date of opening of the account; or ( ) where a declaration of such account has been made under Chapter VI and the value of the account as computed under sub-clause ( ) has been charged to tax and penalty under that Chapter, the sum of all the deposits made in the account with the bank since the date of such declaration subject to the proviso that ‘where any deposit is made from the proceeds of any withdrawal from the account, such deposit shall not be taken into consideration while computing the value of the account’. Whether rule 3(1)( ) is on the statute or not, this is the right way, even from a common-sense perspective discussed earlier. It is not the case that it is because of rule 3(1) ( ) that a bank account is being treated as an asset under section 2( ). Rule or no rule, the position would be the same. [Para 94]”
(ix) Applicable Tax Rate
3.4 TEXT OF SECTION 4
Scope of total undisclosed foreign income and asset
4. 1 Subject to the provisions of this Act, the total undisclosed foreign income and asset of any previous year of an assessee shall be,— the income from a source located outside India, which has not been disclosed in the return of income furnished within the time specified in to sub-section 1 or under sub-section 4 or sub-section 5 of section 139 of the Income-tax Act; the income, from a source located outside India, in respect of which a return is required to be furnished under section 139 of the Income-tax Act but no return of income has been furnished within the time specified in to sub-section 1 or under sub-section 4 or sub-section 5 of section 139 of the said Act; and the value of an undisclosed asset located outside India.
2 Notwithstanding anything contained in sub-section 1 , any variation made in the income from a source outside India in the assessment or reassessment of the total income of any previous year, of the assessee under the Income-tax Act in accordance with the provisions of section 29 to section 43C or section 57 to section 59 or section 92C of the said Act, shall not be included in the total undisclosed foreign income.
3 The income included in the total undisclosed foreign income and asset under this Act shall not form part of the total income under the Income-tax Act.
3.5 NOTES ON CLAUSES
Clause 4—
Srinidhi Karti Chidambaram Principal Chief Commissioner of Income Tax
Mohammed Haris
3.7
TEXT OF SECTION 5
Computation of total undisclosed foreign income and asset
5. 1 In computing the total undisclosed foreign income and asset of any previous year of an assessee,— no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee, whether or not it is allowable in accordance with the provisions of the Income-tax Act;
Rs. 1095/-
LAW RELATING TO BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT 2015
AUTHOR : Raj K. Agarwal, Rakesh Gupta
PUBLISHER : Taxmann
DATE OF PUBLICATION : March 2025
EDITION : 4th Edition
ISBN NO : 9789364556613
NO. OF PAGES : 328
BINDING TYPE : Paperback
DESCRIPTION
This book provides a succinct yet comprehensive analysis of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, popularly called the 'Black Money Act.' Updated by the Finance Act 2025, it examines key elements such as disclosure obligations, assessment processes, penal provisions, and prosecution for tax evasion. Given the evolving nature of black money legislation and limited judicial precedents, this guide clarifies ambiguities and emerging interpretational issues. This book is intended for the following audience:
• Chartered Accountants & Tax Practitioners
• Advocates & Corporate Lawyers
• Finance and Compliance Professionals
• Academicians & Researchers
• Business Owners & High Net Worth Individuals (HNWIs)
The Present Publication is the 4th Edition | 2025 and has been amended by the Finance Act 2025. This book is authored by Dr Raj K. Agarwal & Dr Rakesh Gupta, with the following noteworthy features:
• [Latest Amendments] Reflects all changes introduced by the Finance Act 2025
• [Critical Analysis] In-depth examination of chargeability, valuation, penalties, prosecution, and appellate processes
• [Expert Commentary] Authored by leading professionals with extensive experience in direct tax law and litigation
• [Practical Insights] Addresses common interpretational issues and real-world scenarios.
• [Extensive Referencing] Consolidated forms, rules, notifications, and circulars, with cross-references to the Income-tax Act 1961
• [Valuation Rules] Dedicated coverage on fair market value computations for foreign assets
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