Finance ministry to issue FAQs on new black money law soon

New Delhi: The finance ministry is likely to soon issue FAQs explaining the provisions of the new black money law and also to clarify whether one-time compliance window can be availed by persons already under probe.[caption id=“attachment_2287344” align=“alignleft” width=“380”] Union Finance Minister Arun Jaitley. Image courtesy PIB[/caption] The Income Tax department is working on the “grey areas” with regard to the compliance window and is deliberating on the period to be given for disclosure and following time for payment of tax, official sources said. It would also clarify whether compliance window can be availed in those cases where prosecution or assessment has already started, they said. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015, which was approved by Parliament, was notified last month. Sources said that the tax department is working to ensure that there is no loophole in the compliance window. “For example, the people against whom the tax department already has some information, whether they would be allowed to disclose assets under the compliance window, that we are looking into,” the source said. “The compliance window notification would also have a Frequently Asked Questions (FAQs) section which would specify who is eligible to disclose,” the source said. Finance Minister Arun Jaitley had said in Lok Sabha that there would be a short compliance window for persons having undisclosed income abroad to come clean by paying 30 percent tax and 30 percent penalty. Once the compliance window closes, anyone found having undeclared overseas wealth would be required to pay 30 percent tax, 90 percent penalty and face criminal prosecution. The Act comes into effect from 1 April 2016. PTI