Government will notify the compliance window in the next two-three weeks for those holding undeclared assets abroad to come clean by paying 30 per cent tax and 30 per cent penalty, before the new black money law comes into force.
Talking to reporters a day after Parliament passed the black money law, Finance Minister Arun Jaitley on Thursday said that those who have unaccounted funds abroad and do not want to come clean by taking advantage of the compliance will ‘certainly have a lot to worry (about).’
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015, which got the nod of the Rajya Sabha on Wednesday, two days after the Lok Sabha passed it, seeks to unearth unaccounted wealth stashed abroad.
Under the new law, people having unaccounted wealth will be given an opportunity through a compliance window to come clean by declaring their assets and pay penalty and tax of 60 per cent.
In case they do not take advantage of the compliance window, which will have a short duration, they would have to pay 30 per cent tax, 90 per cent penalty and face criminal prosecution which could result in jail term of up to 10 years.
"The compliance window will be in this financial year. . . The Central Board of Direct Taxes is working on the timeline for compliance window. They will be getting notified in a matter of 2-3 weeks," Revenue Secretary Shaktikanta Das said.
On the apprehensions being expressed that the new black money law is tough and could create hardship for people, Jaitley said: "Those who don't have illegal money or assets abroad have nothing to worry.
“Among those who express very very serious apprehensions, there is a give away in that."
The image is used for representational purpose only
