The Government of India has enacted The Black Money (Undisclosed
Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black
Money Act) on May 26, 2015 to address the issue of undisclosed
assets held abroad. It provides for separate taxation of income and
assets acquired abroad from income not disclosed but chargeable to
tax in India.
As per the Black Money Act, no person resident in India shall
continue to hold an asset located outside India for which a
declaration has been made under section 59 of this Act.
To effectively deal with assets held abroad by persons resident
in India in violation of the Foreign Exchange Management Act, 1999
(FEMA) for which declarations have been made and taxes and
penalties have been paid under the provisions of the Black Money
Act, Reserve Bank has issued the Foreign Exchange Management
(Regularization of assets held abroad by a person resident in
India) Regulations, 2015 notified through Notification dated
September 25, 2015. The provisions governing such Regulation are
1. No proceedings shall lie under the provisions of the FEMA,
against a person resident in India who has made a declaration under
section 59 of the Black Money Act, in respect of any undisclosed
asset located outside India and has paid the tax and penalty in
accordance with the provisions of the Black Money Act.
2. Where the declarant intends to continue to hold the asset so
declared, he shall apply to the Reserve Bank within 180 days from
the date of declaration, for permission under the relevant
provisions of the Act, or rules and regulations framed thereunder,
if such permission is necessary as on the date of application.
3. In case the declarant does not intend to hold the asset so
declared or the permission to hold such asset is refused by the
Reserve Bank, as the case may be, the declarant shall dispose of
the said asset, without any permission under FEMA, within 180 days
from the date of making such declaration or the date of receipt of
the communication from the Reserve Bank conveying refusal of
permission or within such extended period as may be permitted by
the Reserve Bank and bring back the proceeds to India immediately
through the banking channel.
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