‘The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 tabled in Lok Sabha Friday March 20,2015

A Bill proposing to prosecute those stashing illicit wealth abroad with 10 year rigorous imprisonment and providing for a window to persons seeking to come clean on such undisclosed assets, was introduced in Lok Sabha on Friday March 20,2015

Finance Minister Arun Jaitley introduced ‘The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015,’ proposing that it would come into effect from April 1, 2016.

“Recognizing the limitations of the existing legislation, it is proposed to introduce a new legislation to deal with undisclosed assets and income stashed away abroad,” said the Statement on Objects and Reasons of the Bill.

The Bill provides for criminal liability with enhanced punishment with 3-10 year imprisonment for willful attempt to evade tax in relation to foreign income, along with a fine.

Second and subsequent offence would be punishable with rigorous imprisonment for a term of 3-10 years with a fine of Rs. 25 lakh to Rs. 1 crore.

“In prosecution proceedings, the wilful nature of the default shall be presumed and it shall be for the accused to prove the absence of the guilty state of mind,” it added.

The Bill also provides for a penalty of three times the amount of tax for concealment of income in relation to a foreign asset.

Further, a penalty of Rs. 10 lakh would be levied for failure to furnish return of income by persons holding foreign asset, failure to disclose foreign asset in the returns or furnishing of inaccurate particulars of such asset.