Black Money in India
The Black Money Act of 2015
How the Black Money (Undisclosed Foreign Income and Assets) Act of 2015 targeted money hidden abroad, its one-time disclosure window, and international information sharing.
In 2015, India passed the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act.
Targets
Foreign income and assets hidden from tax.
Penalties
- Tax at 30% plus penalty.
- Prosecution with jail terms.
Disclosure window
A one-time compliance window in 2015 let people declare hidden foreign assets with tax and penalty.
Information exchange
- India joined the Common Reporting Standard, receiving account information from other countries from 2017.
- FATCA agreement with the US.
Swiss banks
India receives Swiss bank account details under automatic exchange.
The Swiss account data
Indian tax authorities receive details of accounts held by Indians in Swiss banks each year.
Thinking foreign accounts are secret forever
Automatic information exchange shares data.
Key takeaways
- The Black Money Act came in 2015.
- It targets foreign income and assets.
- A disclosure window was offered.
- Information exchange reveals foreign accounts.
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