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120 percent tax penalty on undeclared assets, IT dept. to undertake survey

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Jamshedpur, July 18: The central government will undertake regular surveys and raids from September 30 for which an action plan has been prepared and soon action will be initiated.

Following the survey and raids, people found guilty of having black money or movable or immovable property then the full details will be collected.

According to current provision, if a person has black money then he has to pay a maximum tax of 60% and the rest money would be left with him.

However, if one declares his movable and immovable property by September 30, then he will have to pay 30% to 45% money as tax and if the property is caught after survey from September 30 then 120% tax will be levied   on him.

Apart from this the income tax department can probe property and money of six years but if after September 30 the person has not declared the tax and if survey and raids are conducted then after formation of income tax act till now the investigation will start and if any undeclared property is caught then 120% tax will be recovered. To recover tax campaign has been speeded up in Jamshedpur.  

In ‘frequently asked questions (FAQs)’ on the new Black Money Act, the finance ministry has said that if undisclosed assets are unearthed by the tax department at a future date, then 120% tax and penalty would be levied on its fair market value on that date.

“If people don’t declare their assets and property then they might face tough situation in coming days. But if they declare their right property and pay the tax they will feel secured,” said, Shyam Kumar, Chief Commissioner, Income Tax department.

Under the Black Money Act, the government has provided for a one time 90-day compliance window for disclosure of undeclared foreign assets.

The window closes on September 30. The disclosure will attract a total of 60% tax and penalty, which has to be paid by December 15, 2015.

However, unaccounted assets and income unearthed by the tax department would attract 120% tax and penalty, besides punitive action, once the window is closed.

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