Page 55 - Union Budget_2019
P. 55
Union Budget 2019
SPECIAL REGIME
11.1 Rationalisation of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015
The existing provisions of Section 2 of the Black Money (Undisclosed Foreign Income and Assets) and
Imposition of Tax Act, 2015 (the BM Act) provide inter alia that the “assessee” means a person who is
resident in India within the meaning of Section 6 of the Income-tax Act which are the basic provisions to
check the residential status in India.
The legislative intent behind enacting the BM Act was to tax foreign income and assets, which were not
charged to tax in India
Thus, it is proposed to amend Section 2 of BM Act so as to provide that the “assessee” shall mean
• Person resident in India as per Section 6 of the Income Tax Act or
• Not ordinarily resident in India or Non-Resident Section 6(6) of Income Tax Act, in the current
previous year but was resident either in the previous year to which income under consideration
relates to or was resident in the previous year in which undisclosed asset located outside India was
acquired.
Section 72(c) of BM act states that where an asset is acquired before the commencement of the Act, and no
declaration of the same has been made, such asset shall be deemed to have been acquired in the year in
which a notice is issued by the Assessing Officer.
Thus, it is further proposed to provide that the previous year of acquisition of the undisclosed asset located
outside India as analysed above shall be determined without giving effect to the provisions of section 72(c)
of the BM Act mentioned supra.
The existing provisions of Section 10(3) and 10(4) of the BM Act did not specifically allow the Assessing
Officer to reassess or initiate reassessment of undisclosed foreign income and asset.
To provide clarification on the above, it is proposed to amend to section 10(3) and 10(4) of the BM Act to
provide that Assessing Officer shall be allowed to reassess or initiate reassessment of undisclosed foreign
income and asset
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