The government on Wednesday gave three months time till September 30 for people to declare their undisclosed foreign income and assets to escape prosecution under the new black money law, while tax and penalty on such funds can be paid till December 31.
Those availing the one-time 'compliance window' would be required to pay a tax of 30 per cent and a penalty of a similar amount.
Under the new black money law, which has been passed by Parliament and would come into force from April 1, 2016, the penalty would be much higher at 90 per cent, in addition to a 30 per cent tax on undisclosed foreign assets, while such persons would also face criminal prosecution with a jail term of up to ten years.
The Finance Ministry said in a statement that it has notified the three-month compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Those making the disclosure during this period would have further three-months time till December 31 to pay the taxes and the penalty on their foreign income and assets.
"The Central Government has notified the September 30, 2015, as the date on or before which a person may make a declaration in respect of an undisclosed asset located outside India under the compliance provisions" of this Act.
"The last date by which a person must pay the tax and penalty in respect of the undisclosed foreign assets so declared shall be the December 31, 2015," it added.
The new law was passed by Parliament in May and was notified on May 26, 2015 following the President's assent.
"The Act provides for separate taxation of undisclosed foreign income and assets. Stringent penalties and prosecution, including rigorous imprisonment up to 10 years and penalty equal to three times of the tax have been prescribed for violation," the statement added.
