Black Money Bill in Parliament on Friday

The government is likely to table in the Lok Sabha on Friday a Bill to make non-disclosure of overseas income and assets a predicate offence that will attract disciplinary action including up to a 10-year jail term.

The Bill will provide a short window to overseas asset holders to declare their wealth, pay taxes and penalties to escape disciplinary action. The Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015, according to Finance Ministry sources, will be tabled on Friday -- the last day of the first leg of the Budget session of Parliament that ends tomorrow.

After being tabled, the Bill could be referred to the Parliamentary Committee for scrutiny before being taken up for passage. Under the provisions of the new Bill, the offence will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission for resolution of disputes. There will also be a penalty at the rate of 300 per cent of taxes on the concealed income and assets.

The Income Tax assesses, who have overseas assets will be getting a one-time opportunity for declaring them. The time-frame of the short window will be notified after the Bill is passed. According to sources, the window will be for a few months.

The Bill seeks to make non-filing of income tax returns or filing of returns with inadequate disclosure of foreign assets liable for prosecution with punishment of rigorous imprisonment of up to 7 years. According to the Bill, beneficial owner or beneficiary of foreign assets will be mandatorily required to file returns, even if there is no taxable income. Date of opening of foreign account would be mandatorily required to be specified by the assessee in the return of income.