Black money on Govt. radar! CBDT to clarify on bank a/c disclosures

The Finance Ministry will soon come up with the second set of Frequently Asked Questions (FAQs) to help various stakeholders! The CBDT would answer around two dozen questions based on inputs received from stakeholders since the notification of the Compliance Window under the Black Money Act on July 1.

The compliance window might clarify on the period for which foreign bank account details have to be provided after concerns were expressed over the availability of records beyond a few years, reported the PTI.

"The tax department has received queries with regard to disclosure of bank accounts. Many people are saying that they do not have details of the foreign bank account since its opening," a source told PTI.

The Central Board of Direct Taxes (CBDT) had asked people having undisclosed foreign bank accounts to provide sum total of credits since the opening of the account, under the new rules released by the Income Tax department.

Earlier, in the first set of FAQs released on July 6, the CBDT had answered 32 questions on various aspects of the black money law.

The source said that some stakeholders have raised an issue that if someone has account for long, say 20-30 years, how will that person provide details for that period.

There were instances when people do not keep record of bank passbooks for long and banks too might not provide printed details for such a long period of time. So the new set of FAQs will provide solutions for such problems.

The 90-day compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, that ends on September 30, provides opportunity to people to disclose their unaccounted wealth, pay 60% tax and penalty and come clean. They will have time till December 31 to pay the tax and penalty.

In his Independence Day speech, Prime Minister Narendra Modi said that Rs 6,500 crore of unaccounted overseas wealth has already been disclosed by persons having unaccounted assets abroad.

According to the source, the tax department has also received queries from professionals who have stayed abroad for some years and enrolled in social security schemes of foreign countries.

"Further clarity would be provided on the queries we have received following stakeholder consultation as well as through e-mails and letters. The FAQs would comprise of around 20-25 questions," the source added.

(Image: Indiatimes)