TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETSCentral

Section 70 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

The provisions of Chapter XV of the Income-tax Act relating to liability in special cases and of section 189 of that Act or of Chapter V of the Wealth-tax Act, 1957 (27 of 1957)relating to liability to assessment in special cases shall, so far as may be, apply in relation to proceeding sunder this Chapter as they apply in relation to proceedings under the Income-tax Act or, as the case may be, the Wealth-tax Act.

Summary

Existing rules from the Income-tax Act about special types of liability apply to these foreign asset cases.
Specifically, Chapter XV of the Income-tax Act, which handles "special cases" like deceased persons or trusts, is used.
Section 189 of the Income-tax Act, dealing with closed-down or dissolved firms, also applies here.
Rules from Chapter V of the Wealth-tax Act regarding special assessment liabilities are imported into this Act.
These provisions apply to proceedings under the compliance chapter of the Black Money law.

Practical examples

1A woman who declared her foreign assets dies before the tax is fully settled. Under Section 70, the "special case" rules from the Income-tax Act are used to decide how her children, as her legal heirs, will be responsible for the remaining proceedings.

2A partnership firm dissolves just after filing a declaration. Section 70 allows the tax authorities to use the rules from Section 189 of the Income-tax Act to ensure the partners remain liable for the tax owed on that declaration.

FAQ

1. Which chapter of the Income-tax Act applies to Section 70 of The Black Money Act, 2015?

Section 70 specifies that Chapter XV of the Income-tax Act relating to liability in special cases shall apply.

2. Does the Wealth-tax Act play a role in Section 70 of the Black Money law?

Yes, Section 70 states that Chapter V of the Wealth-tax Act, 1957, regarding special assessment liability, also applies.

3. Is Section 189 of the Income-tax Act relevant under Section 70 of this Act?

Yes, Section 70 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, explicitly mentions section 189 as an applicable provision.

Test yourself

Q1.Under Section 70 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which chapter of the Wealth-tax Act is applicable?

Q2.Which section of the Income-tax Act is specifically named as applicable in Section 70 of the Black Money law?

Q3.According to Section 70 of the Act, Chapter XV of the Income-tax Act applies. What is the subject of that chapter?

Q4.Under Section 70 of The Black Money Act, 2015, how far do these imported provisions apply?

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