Union Cabinet on Tuesday has cleared the Foreign Income and Undisclosed Assets (Imposition of New Tax) Bill, 2015 or popularly known as Black Money Bill, which proposes to provide powers to tax authorities to deal with illegal wealth stashed abroad. A decision in this regard was taken at the cabinet meeting in New Delhi yesterday.
In a bid to check the black money menace, the Bill will give more powers to the tax department in tracking illicit wealth stashed abroad and provide for strict penal actions for such offence.
Under the provisions of the new Bill, the offence will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission. The Bill also proposed the penalty at the rate of 300 per cent of taxes to be levied on the concealed income and assets, in addition to 10 years rigorous imprisonment.
Finance Minister Arun Jaitley had announced in his Budget speech on February 28 that the government would bring in a comprehensive law to check the black money menace by providing for a jail term of up to 10 years for hiding foreign assets and up to 300 per cent penalty.
“On black money, a new structure including e-filing and tracking down is our abiding commitment,” he had said.
Jaitley had also proposed to amend the Income-Tax Act to prohibit “acceptance or payment” of an advance of Rs 20,000 or more in cash for purchase of immovable property.