The Undisclosed Foreign Income and Assets (Imposition of Tax) Act, 2015, commonly referred to as the Black Money Act, is an Indian law aimed at curbing the issue of unreported income and assets held by Indian residents outside India. It provides a legal framework for declaring such undisclosed foreign wealth and imposes stringent penalties on non-disclosure.
This Act is particularly important for Indian individuals and businesses with financial interests abroad. It mandates that all foreign income and assets must be disclosed in the income tax return. Failure to do so can result in a flat 30% tax rate (without any exemptions), a penalty of up to 90% of the asset's value, and even prosecution.
For small business owners, consultants, or professionals operating globally or receiving payments from overseas, it's critical to remain compliant. Any bank accounts, shares, property, or income earned outside India must be reported under Indian tax laws—regardless of whether it is taxable in the foreign country or not.
To support compliance, professional assistance is recommended, especially when filing income tax returns that involve foreign elements. For end-to-end income tax solutions, you can explore FinTax24’s services, which simplify the filing process while ensuring full legal compliance with evolving regulations.
In summary, the Undisclosed Foreign Income and Assets Act plays a crucial role in India’s tax transparency efforts and requires every Indian resident to truthfully disclose their overseas financial interests.