Section 69 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- (1)Where the undisclosed asset located outside India is represented by cash(including bank deposits), bullion or any other assets specified in the declaration made under section 59—
- (a)in respect of which the declarant has failed to furnish a return under section14 of the Wealth-tax Act, 1957 (27 of 1957) for the assessment year commencing on or before the1st day of April, 2015; or
- (b)which have not been shown in the return of net wealth furnished by him for the said assessment year or years; or
- (c)which have been understated in value in the return of net wealth furnished by him for the said assessment year or years, then, notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957) or any rules made thereunder,—
- (I)wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such assets shall not be included in his net wealth for the said assessment year or years;
- (II)the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken into account in computing the net wealth of the declarant for the said assessment year or years. Explanation.—Where a declaration under section 59 is made by a firm, the assets referred to in clause (I) or, as the case may be, the amount referred to in clause (II) shall not be taken into account in computing the net wealth of any partner of the firm or, as the case may be, in determining the value of the interest of any partner in the firm.
- (2)The provisions of sub-section (1) shall not apply unless the conditions specified in sub-sections (1) and (2) of section 63 are fulfilled by the declarant.
Summary
- Declared assets like cash, bank deposits, and bullion are not subject to wealth tax.
- This exemption applies if the person failed to file a wealth tax return for years starting on or before April 1, 2015.
- It also covers assets that were previously hidden or whose value was understated in past wealth tax returns.
- If a partnership firm makes the declaration, the assets are not included in the individual partners' personal net wealth.
- To get this benefit, the person must follow the payment rules in section 63.
Practical examples
FAQ
1. Is bullion exempt from wealth tax under Section 69 of the Black Money law?
Yes, Section 69 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, specifically includes bullion as a protected asset.
2. What is the cutoff date for wealth tax assessment years under Section 69?
The exemption applies to assessment years commencing on or before the 1st day of April, 2015, according to Section 69.
3. Does a firm's declaration protect its partners from wealth tax under Section 69?
Yes, the Explanation in Section 69 of the Act confirms that assets declared by a firm are not taken into account for a partner's net wealth.
4. Must I pay the black money tax to get the wealth tax exemption in Section 69?
Yes, Section 69(2) states the exemption only applies if the conditions for payment in section 63 are fulfilled.
Test yourself
Q1.Under Section 69 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which asset is specifically mentioned as eligible for exemption?
Q2.According to Section 69 of the Black Money law, the exemption applies to wealth tax assessment years starting on or before:
Q3.Under Section 69 of the Act, if a partnership firm declares an asset, how does it affect the partners?
Q4.Does Section 69 of The Black Money Act, 2015, apply if a person simply understated the value of an asset in their previous return?