The RBI issued the RBI (Regularisation of assets held abroad by
person resident in India) Regulations, 2015
("Regulations"), by a notification dated September 25,
2015. This is in context of the declarations made, taxes and fines
paid, under and as a result of the enactment of the Black Money
(Undisclosed Foreign Income and Assets) and Imposition of Tax Act,
2015 ("Black Money Act"). The Black Money Act provides
for separate taxation of income and assets acquired abroad from
income undisclosed but which is subject to tax in India.
Given the operation of the Black Money Act, the Regulations
provide the following:
No proceedings shall lie under the
Foreign Exchange Management Act, 1999 ("FEMA"), against
the declarant with respect to an asset held abroad, for which taxes
and penalties have already been paid under the Black Money
No permission under FEMA will be
required to dispose declared assets or to bring the proceeds of the
disposal to India through banking channels within 180 (one hundred
eighty) days. However, if the declarant wishes to continue holding
the asset, an application must be made to the RBI within 180 (one
hundred eighty) days from the date of declaration. In the event
that permission is not granted by the RBI, the asset(s) will have
to be disposed within 180 (one hundred eighty) days from the date
of receipt of communication from the RBI and the sale proceeds will
have to be bought in through normal banking channels.
This clarification ensures that those who have already been
subject to a penalty in violation of FEMA and regulations thereof,
are not put through double jeopardy.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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