Section 10 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- (1)For the purposes of making an assessment or reassessment under this Act, the Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax Act or any other authority under any law for the time being in force or on coming of any information to his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be produced such accounts or documents or evidence as the Assessing Officer may require for the purposes of this Act and may, from time to time, serve further notices requiring the production of such other accounts or documents or evidence as he may require.
- (2)The Assessing Officer may make such inquiry, as he considers necessary, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year or years.
- (3)The Assessing Officer, after considering such accounts, documents or evidence, as he has obtained under sub-section (1), and after taking into account any relevant material which he has gathered under sub-section (2) and any other evidence produced by the assessee, shall by an order in writing, assess the undisclosed foreign income and asset and determine the sum payable by the assessee.
- (4)If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing Officer shall, after taking into account all the relevant material which he has gathered and after giving the assessee an opportunity of being heard, make the assessment of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee.
Summary
- The Assessing Officer can start a case if they get information about hidden foreign assets from another tax official or any other legal source.
- They serve a notice to the person, asking them to bring accounts, documents, or evidence on a specific date.
- The official has the power to do a deep inquiry to get the full story about a person's undisclosed foreign money or properties.
- After looking at all the evidence and facts, the official writes an order to decide how much foreign income was hidden and what tax must be paid.
- If a person ignores the notice or refuses to provide documents, the official can use their "best of judgment" to decide the tax amount.
- This "best of judgment" means the official makes a fair estimate based on whatever information they have available.
Practical examples
FAQ
1. How does an assessment start under Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Under Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, it starts when the Assessing Officer serves a notice based on information received or their own discovery.
2. What can the officer ask me to produce under Section 10 of the Black Money Act?
Under Section 10 of the Black Money Act, the officer can require you to produce accounts, documents, or any other evidence they need for the case.
3. What is a "best of judgment" assessment under Section 10 of the Black Money Act?
Under Section 10 of the Black Money Act, if you fail to follow the notice terms, the officer can decide your tax liability based on the best information they have after giving you a chance to be heard.
4. Does the officer have to give the assessment in writing under Section 10 of the Black Money Act?
Yes, Section 10 of the Black Money Act requires the Assessing Officer to make an order in writing to assess the income and determine the amount payable.
Test yourself
Q1.Under Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what must the Assessing Officer do before making a "best of judgment" assessment?
Q2.Which provision of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 gives the officer the specific authority to compel the production of documents mentioned in a Section 10 notice?
Q3.According to Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, from where can an Assessing Officer receive information to start an assessment?
Q4.Under Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what is determined in the final written order?