Finance Minister Arun Jaitley on Monday moved a bill, Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, which provides for penalty and tax up to 120 percent for those who have parked black money abroad.
Rejecting the demand by opposition parties to refer the bill to the Standing Committee, Jaitley asked the opposition not to develop “cold feet” in supporting the law.
He told the opposition, “For the past 11 months, you have been asking us as to what steps we are taking. When I take steps, do we support the bill and drop the demand of sending it to Standing Committee.”
Enacting it would provide an opportunity to offenders to transfer unaccounted overseas wealth to unknown destinations, he said.
He said there could be a two-month window to declare overseas assets and for those wanting to come clean, Jaitley said there would be a compliance window in two parts — to either declare the assets and pay 30 percent tax and 30 percent penalty.
Once the compliance window closes, anyone having undeclared overseas wealth would need to either pay 30 percent tax, 90 percent penalty or face criminal prosecution, Jaitley said.
The bill introduced to deal with black money, provides punishment of up to 10 years for the offenders.