BLACK MONEY ACT & IMPOSITION OF TAX ACT
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The document discusses the Black Money and Imposition of Tax Rules, 2015 (BMIT Rules) which came into force on July 2, 2015. It outlines methods for determining the fair market value of unquoted equity shares, which shall be either the cost of acquisition or a calculation based on book value of assets, liabilities, and equity shares. It notes that a flat 30% tax will be imposed without exemptions or deductions, along with an equal penalty amount. Failure to report foreign income will attract a penalty of Rs. 10 lakh, and subsequent offenses are punishable by 3-10 years in prison and fines. Undisclosed holdings of Rs. 5 lakh or less in a year due to oversight will not face
BLACK MONEY ACT & IMPOSITION OF TAX ACT
- 4. 1.Title and Commencement TITLE:- The rules are known as Black Money and Imposition of Tax Rules, 2015 BMIT RULES,2015 COMMENCEMENT:- It came into force on 2nd July, 2015.
- 9. 4. FMV OF UNQUOTED EQUITY SHARES SHALL BE HIGHER OF:- (i) COST OF ACQUISITION OR (ii) FMV OF UNQUOTED SHARES=(A+B-L)*(PV) (PE) Where, A= BOOK VALUE OF ALL ASSET*- (a)(ANY AMOUNT OF INCOME TAX PAID-AMOUNT OF INCOME TAX REFUND CLAIMED) (b) (ANY AMOUNT SHOWN AS ASSET WHICH DOES NOT REPRESENT THE VALUE OF ANY ASSET**)
- 10. B= FMV OF BULLION, JEWELLERY, PRECIOUS STONE, ARTISTIC WORK, SHARES, SECURITIES AND IMMOVABLE PROPERTY AS DETERMINED IN MANNER PROVIDED IN THIS RULE; L=BOOK VALUE OF LIABILITIES* PE=TOTAL AMOUNT OF PAID UP EQUITY SHARE CAPITAL AS SHOWN IN THE BALANCE-SHEET; PV=THE PAID UP VALUE OF SUCH EQUITY SHARES
- 13. *
- 15. NET ASSET
- 22. DECLARATION MADE IN FORM 6 COMMISSIONER SHALL GRANT ACKNOWLEGMENT IN FORM 7 WITHIN FIFTEEN DAYS OF SUBMISSION OF TAX ALONG WITH PENALTY
- 24. 1. FLAT 30% TAX WITHOUT ANY EXEMPTION, DEDUCTION, SET OFF OR CARRY FORWARD (+) EQUAL AMOUNT BY WAY OF PENALTY 2. FAILURE TO FILE RETURNS OF FOREIGN INCOME WILL ATTRACT A PENALTY OF Rs. 10 LAKH 3. ALONG WITH ENHANCED PUNISHMENT OF JAIL FOR 3-10 YEARS WITH PENALTY EQUAL TO 3 TIMES OF TAX EVADED OR 90% OF UNDISCLOSED INCOME WHICH IS ADDITION OF TAX OF 30%
- 25. 4. SECOND AND SUBSEQUANT OFFENCE WILL BE PUNISHABLE WITH IMPRISONMENT OF 3-10YEARS AND FINE OF Rs. 1 CRORE 5. UNDISCLOSED HOLDINGS OF Rs. 5 LAKH OR LESS ANY TIME DURING A YEAR NOT REPORTED OUT OF OVERSIGHT OR IGNORANCE SHALL NOT ATTRACT ANY PENALTY 6. BILL EMPOERS THE CENTER TO ENTER INTO AGREEMENT WITH FOREIGN COUNTRIES FOR EXCHANGE OF INFORMATION FOR RECOVERY OF TAX AND AVOIDANCE OF DOUBLE TAXATION
Editor's Notes
- ASSET HERE IS REFERRED AS ASSET OTHER THAN BULLION, JEWELLERY, PRECIOUS STONE, ARTISTIC WORK, SHARES, SECURITIES AND IMMOVABLE PROPERTY ** ASSET LIKE UNAMORTISED AMOUNT OF DEFERRED EXPENDITURE
- *IT DOES NOT INCLUDE, THE PAID UP CAPITAL IN RESPECT OF EQUITY share THE AMOUNT SET APART FOR PAYMENT OF DIVIDENDS RESERVES & SURPLUS , OTHER THAN THOSE SET APART TOWARDS DEPRECIATION PROVISION FOR TAXATION OTHER THAN TAX PAID-AMOUNT CLAIMED AS REFUND PROVISION MADE FOR PAYMENT OF LIABILITIES, OTHER THAN ASCERTAINED LIABILITIES CONTINGENT LIABILITIES OTHER THAN ARREARS OF DIVIDEND PAYABLE IN RESPECT OF CUMULATIVE PREFERENCE SHARES
- * ANY DEPOSIT MADE FROM PROCEEDS OF WITHDRWAL FROM THE ACCOUNT, IS NOT TAKEN INTO CONSIDERATION
- * WHERE AN ASSET WAS TRANSFERRED WITHOUT ANY CONSIDERATION OR IN ADEQUATE CONSIDERATION BEFORE THE VALUATION DATE, THE FMV OF THE ASSET SHALL BE HIGHER OF ITS COST OF ACQUISITION & THE FMV ON THE DATE OF TRANSFER
- * IF CENTRAL BANK OF THE COUNTRY OR JURISDICTION DOES NOT SPECIFY THE RATE OF CONVERSION THEN RATE SHALL BE THE ONE SPECIFIED BY ANY OTHER BANK REGULATED UNDER THE LAWS OF THAT COUNTRY OR JURISDICTION