The Income Tax department will start sending SMS/emails to about 25,000 individuals, who are part of the "high-risk" cases identified for non-disclosure of foreign assets in the income tax returns (ITRs) filed for Assessment Year (AY) 2025-26, sources said.
FATCA will facilitate flow of financial information between countries.
In September last year, India received financial information from over 108 countries regarding foreign accounts and income in the form of interest and dividend earned outside India.
Fatca aims to track all US residents with non-US accounts and US citizens, too.
FATCA is aimed to strengthen business ties.
The share of non-resident Indians (NRIs) and overseas investors in Indian mutual funds has been declining over time, despite adding half-a-trillion rupees to holdings over the last five years. Mutual fund holdings for the segment went up from Rs 0.95 trillion as of December 2018 to Rs 1.54 trillion as of December 2022, shows Business Standard analysis of data from the industry body Association of Mutual Funds in India (Amfi). Their share in overall mutual fund assets has fallen from 4.2 per cent to 3.9 per cent during the same period.
Indians having undisclosed income in the United States (US) may face proceedings under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, this financial year. Also, those named in global leaks may be searched, show-caused, and prosecuted, according to the FY23 internal action plan of the Central Board of Direct Taxes (CBDT). The CBDT has rolled out an aggressive target and timeline to investigate tax evasion matters, especially those involving undisclosed foreign assets.
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A non-compliance with FATCA entails 30 per cent withholding tax on certain US source payments.
India and the US inked a tax information sharing agreement under FATCA which will enable automatic exchange of financial information.
Financial institutions at the risk of US sanctions as sharing of documents on SC directive amounts to violation of existing agreements.
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The 'in substance' agreement with India under Foreign Account Tax Compliance Act was concluded on April 11, the US Treasury said.
The US has been widely criticised for using pressure tactics to secure information from other countries, without reciprocity.
Armed with automatic information exchange pact with the US, government on Thursday asked persons holding undisclosed offshore assets to declare them before September 30 as it would be difficult to hide unaccounted assets in future.
Through these engagements with more than 50 countries, the US is looking to implement information reporting and withholding tax provisions, commonly known as the Foreign Account Tax Compliance Act.
The Income Tax Act empowers the CBDT to capture information in respect of payments to non-residents, whether taxable or not
A stream of people, including those from Rajasthan and Karnataka, walked into the only designated office before the closure of the one-time compliance window.
The KYC parameters now include declaration of the gross annual income or net worth.
The tax department will analyse mismatches in income declarations and spending patterns to trace tax evasions and black money.
Over the last two years, despite an amnesty scheme, only about Rs 2,500 crore of taxes have been recovered.
Arun Jaitley has promised a compliance window under the new black money law for persons with overseas funds to come clean.
India and Singapore had in 2013 amended the DTAA to help exchange banking and tax-related information more effectively.
'I think investors see a lot of positives happening in India now.'
The regulator also said that it would have a re-look at the delisting guidelines.
Promoters, who have a higher degree of accountability and public responsibility, should share more details about themselves.
A newspaper reported that over 500 Indians have association with firms in tax havens.
Obama to push for expansion of Foreign Account Tax Compliance Act.
A K Bhattacharya digs into the yet-to-be-public report on ways to curb black money and finds out that Modi's next moves could include action on dabba trading, hawala, and education.
Identity of 427 account holders abroad has been established and 250 of them have admitted to having accounts, Finance Minister Arun Jaitley revealed on Wednesday.
Compliance window for those with undisclosed income abroad to come clean by paying 30 per cent tax and 30 per cent penalty
'Tax dodging through tax havens is one of the ways multinational corporations and the super-rich in India are using to evade taxes.'
The sector needs to move away from such concepts.
The Street is never short of hope and events to look forward to
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