Section 72 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
For the removal of doubts, it is hereby declared that—
- (a)save as otherwise expressly provided in the Explanation to sub-section (1)of section 69, nothing contained in this Chapter shall be construed as conferring any benefit, concession or immunity on any person other than the person making the declaration under this Chapter;
- (b)where any declaration has been made under section 59 but no tax and penalty has been paid within the time specified under section 60 and section 61, the value of such asset shall be chargeable to tax under this Act in the previous year in which such declaration is made;
- (c)where any asset has been acquired or made prior to commencement of this Act, and no declaration in respect of such asset is made under this Chapter, such asset shall be deemed to have been acquired or made in the year in which a notice under section 10 is issued by the Assessing Officer and the provisions of this Act shall apply accordingly.
Summary
- The benefits of making a disclosure belong only to the specific person who makes the declaration.
- If a person declares an asset but fails to pay the required tax and penalty on time, the asset is taxed in the year they declared it.
- For any foreign asset bought before this law started that was not declared, the law treats it as if it was bought in the year the tax officer finds it.
- This "deemed" or assumed date of purchase is used to calculate how much tax is owed based on current values.
Practical examples
FAQ
1. Can my business partner get immunity if I declare an asset under Section 72 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
No, Section 72 clarifies that nothing in the disclosure chapter gives any benefit or immunity to anyone other than the person who actually makes the declaration.
2. What happens if I declare a foreign asset but do not pay the tax under Section 72 of the Black Money Act?
Under Section 72, if you declare an asset but fail to pay the tax and penalty on time, the value of that asset is charged to tax in the year you made the declaration.
3. How are old assets handled if I never declared them under Section 72 of the Black Money Act?
Section 72 states that if an asset was acquired before the Act but never declared, it is deemed to have been acquired in the year the Assessing Officer issues a notice under Section 10.
Test yourself
Q1.Under Section 72 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, if a person declares an asset but fails to pay the tax, in which year is the asset taxed?
Q2.If a person is barred from making a declaration by Section 71 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and an officer later finds their old asset, how does Section 72 affect the timing?
Q3.Under Section 72 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, who receives the benefits and immunity of a declaration?
Q4.For an asset acquired in 1990 and never disclosed, when does Section 72 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 say it was acquired if a notice is issued in 2026?