First Set Of Show Cause Notices Under Stringent Black Money Law To Be Issued In Coming DaysModi speaking on black money

Five years after the stringent Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act was passed by the Parliament in 2016, the authorities are now set to issue the first set of show cause letters under the law, reports Economic Times.

The authorities may likely serve about 400 notices under the law nationwide. Of these, 40-50 are likely to be served in Mumbai alone. It should be noted that Mumbai accounts for the largest quantum of income tax collection in the nation.

Though the law was passed by the Parliament in 2015, it came into force on 1 April 2016. It is more stringent and wider than the Income Tax Act.

The law was instituted to overcome the limitations in the existing statutes and tax the hidden wealth of Indians stashed in tax haven banks abroad, or as other assets like properties through individual names, discretionary trusts, trusts and closely-held companies.

The Act empowers the authorities in the tax department to question assets acquired at any time in the past if they stumble upon the information in the present day.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement