Government on Monday warned of serious consequences such as stringentpenalties and a jail term for non-disclosure of overseas income and assets, saying that from 2017 tax authorities will start getting access to such information from foreign countries.
In ‘Frequently Asked Questions (FAQs)’ on the new Black Money Act, the Finance Ministry has said that if undisclosed assets are unearthed by the tax department at a future date, then 120% tax and penalty would be levied on its fair market value on that date, besides a jail term.
“India is expected to start receiving information through Automatic Exchange of Information (AEOI) route under FATCA from USA later in the year 2015. Further, under the multilateral agreement India will start receiving information from other countries under AEOI route from 2017 onwards,” it said.
As on March 18, 58 jurisdictions (including India) have committed to share information under AEOI by 2017. A further 36 jurisdictions have committed to share by 2018, including jurisdictions which have beneficial tax regime, it said.