Indians holding undisclosed income and assets abroad are set to face hefty financial and criminal penalties with the Lok Sabha passing a historic Bill to deter evaders from stashing black money overseas.
Tax evasion on foreign assets will carry a punishment of three to 10 years rigorous imprisonment.
The Bill gives one-time window to holders of undisclosed incomes: pay 30% tax, 30% penalty and legalise your assets; after the window, pay 30% tax, 90% penalty and face 3 to 10 year Rigourous Imprisonment.
Law deals only with undisclosed incomes/assets held abroad and will apply only to Indian residents.
Tax evasion on foreign assets has been made non-compoundable offence.
The law won’t apply to Indians students abroad or working professionals and will target only the “big fish” by covering holders of minimum ₹5 lakh in foreign accounts and not those with lesser monies.