With respect to liability for taxes, penalties and prosecutions, the Black Money Act (BML) and the Income Tax Act (FTA) apply simultaneously. Black income or assets may be taxable under either; or both acts. However, once income or capital is taxed under a law; It cannot be re-imposed under the other Act. There is no provision for double taxation in India. BML is only directed against “foreign” black money. The ITA covers both foreign and domestic black money. This law was enacted to take steps to solve the problem of black money, i.e. undisclosed foreign income and assets, to provide procedures for dealing with such income/assets, to levy taxes on them and for other related/ancillary matters. Black Money (Undisclosure Foreign Income and Assets) and Imimpose of Tax Act, 2015 is an Act of the Indian Parliament. It aims to curb black money or undisclosed foreign assets and income, and imposes taxes and penalties on that income. The law was passed by both houses of parliament.
The law received approval from the President of India on 26 May 2015.   It entered into force on 1 July 2015. Black money or the underground economy as a phenomenon can be found all over the world. Estimates of this black money economy in India are difficult and different tools and studies have produced different estimates of the same. Some estimates of the annual growth rate of black silver place it at 30-40% of GDP. India`s estimated GDP is about $2800 billion (210 crore per lakh) 1. The current legislative package on the attack on black money consists of the following parts: Read | No estimate of black money that has been hidden in the Swiss bank over the past 10 years: Ministry of Finance This is a partial analysis of the black money law. In individual chapters, I deal with other topics. If either condition is not met, that person is not an evaluator.
The stay is discussed in paragraph 3.1.1 above. The tax liability is explained below. For example, there is a person who is resident and usually resident. He has no black money. This is not a person assessed under the BML. No action can be taken against him within the framework of the BML. However, if the income is earned and spent after July 1, 2015; and the AO discovers it in 2025; He can still tax the income for the year it was earned. It is not necessary for the AO to tax the income in the year in which it received the information.
BML has no time limit. Therefore, the income from black money (Post BML) will always be taxable. BML is a set of regulations to deal with black money. It covers several provisions of the costs, calculation (partially), valuation, objections and enforcement section. All this on thirty pages. This raises questions: On August 12, 2015, newspapers published the following report: The Supreme Court-appointed Special Investigation Team (SIT) investigated black money abroad. The SIT has enabled the Government of India to tighten cases of undisclosed assets held outside India, even though the GOI already has information. Hopefully, the necessary circular/notification will be issued by the government. This will be a great relief for people who are already under investigation. This composition is carried out in accordance with the existing provisions of the Income Tax Act and not under the BML. He said: “In addition to establishing stricter criminal consequences, the Black Money Act included the offence of wilful attempted tax evasion in relation to undisclosed foreign income/assets as a planned offence under the Anti-Money Laundering Act of 2002 (PMLA).” The article does not specify the period within which a persistent infringement may be mitigated.
For example, the appraiser had a house abroad as black money. This violation of FEMA is not punishable under FEMA because of the VC under the BML. But how much longer? Can the appraiser continue to hold the assets abroad after the return is filed? Or should it sell the asset and bring the proceeds back to India? 5.3 The BML does not apply to Indian income. Let`s say $500 billion. Black money came out in India. According to one estimate, $450 billion is revenue from Indian sources. This does not fall under the definition of undisclosed income. In fact, the applicant cannot even disclose India`s revenues under the voluntary compliance system.
Once the money is outside of India, it can disclose the assets as undisclosed assets overseas. The Black Money Act (as it is popularly known) was promulgated and entered into force on July 1, 2015 with 88 articles. The rules (12 rules) and forms (7 forms) were also notified on 2-7-2015. As a result, the court held that the penalty under section 43 of the AMA is not defensible. However, the court ruled that any determination of undeclared income or undisclosed assets abroad must be subject to strict measures in accordance with the law. The court referred to the Budget Speech of the Honourable Minister of Finance, in which the Minister of Finance stated: “Tracking down and returning wealth that legitimately belongs to the country is our ongoing commitment to the country. Recognizing the limitations of existing legislation, we have taken the considered decision to enact a comprehensive new black money law to specifically address funds hidden abroad. (ii) BML only covers assets existing on or after 1 July 2015. Since the doctor has already spent the money, there are no assets outside of India. Therefore, BML cannot be applied. With the strengthening of the DTA and tax information exchange mechanisms (TIEMs) and an international attack on shady tax havens, kyc and amL (anti-money laundering) mechanisms have strengthened in many countries, particularly fatf countries.