The government has stated that those who fail to disclose information on income derived from overseas assets in ITR (Income Tax Returns) forms, might be subjected to prosecution, as reported by MoneyControl.
“Under the Black Money Act, money, even if sent through legal sources, without revealing it in the income tax return formalities; one can face prosecution for not disclosing foreign assets. The department is taking strong enforcement actions against such people,” CBDT (Central Board for Direct Taxes) Chairman, Sushil Chandra, said.
This move builds upon the current government’s efforts to curb black money in the Indian economy and help the authorities to monitor the flow of funds in and out of the country. Black money refers to income sourced through illegal means or not disclosed to avoid taxes.
Mr Chandra also noted that the Indian government has AEOI (Automatic Exchange Of Information) agreements with over 70 countries. This is expected to reduce the delay in tracking fraudulent transactions between India and such nations.
It was reported in October 2018 that CBDT was coordinating efforts with its foreign counterparts in investigating offshore bank deposits and purchase of assets by thousands of Indians. CBDT has also identified suspicious 80,000 bank accounts in India that witnessed large cash deposits after demonetisation.