the Act?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> The person will only be ineligible from declaration of those
\nforeign assets which have been acquired during the
\nyear for which a notice under
\nsection 142\/ 143(2)\/
\n148\/ 153A\/ 153C
\nis issued and
\nthe proceeding is pending before the Assessing
\nOfficer. He is free to declare other foreign assets which have
\nbeen acquired during other years for which no notice under above
\nreferred sections have been issued.<\/p>\n <\/p>\n
Question No.7:<\/em><\/strong> As per section
\n71(d)(i), declaration cannot
\nbe made where
\nan <\/em><\/strong>undisclosed asset
\nhas been acquired
\nduring any previous
\nyear <\/em><\/strong>relevant to an assessment year for which a
\nnotice under section 142, <\/em><\/strong>143(2), 148, 153A or 153C of the
\nIncome-tax Act has been issued. If the <\/em><\/strong>notice has been issued but not served on
\nthe declarant then how will <\/em><\/strong>he come to know whether the notice has
\nbeen issued?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> The declarant will not be eligible for declaration under
\nChapter VI of the Act where an undisclosed asset has
\nbeen acquired during anyprevious year relevant to any assessment
\nyear where a notice under section 142, 143(2), 148, 153A or 153C of the
\nIncome-tax Act has been issued and served on the declarant on or before 30th<\/sup> day of June, 2015.The declarant is required to file a
\ndeclaration regarding receipt of any such notice in Form 6. <\/p>\n <\/p>\n
Question No. 8:<\/em><\/strong> Where
\nan undisclosed foreign asset has been acquired partly during a <\/em><\/strong>previous year relevant to the assessment
\nyear which is pending for <\/em><\/strong>assessment and partly during other years
\nnot pending for assessment <\/em><\/strong>then whether such asset is eligible for
\ndeclaration under Chapter VI <\/em><\/strong>of the Act?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> In the case
\nwhere proceedings are
\npending before an
\nAssessing Officer in pursuance of a notice under
\nsection 142, 143(2), 148, 153A or 153C
\nof the Income-tax
\nAct served on
\nor before 30-06-2015,
\nthe declarant may declare the undisclosed
\nasset under Chapter VI of the Act.
\nHowever, while computing
\nthe amount of
\ndeclaration the investment made in the asset during the
\nprevious year relevant to the assessment year for which such notice is
\nissued needs to be deducted from the fair market value of the asset
\nfor which the person shall provide
\na computation alongwith
\nthe declaration. Further,
\nsuch investment which is deducted from the fair
\nmarket value shall be assessable in the assessment of the
\nrelevant assessment year pending under the Income-tax Act and the person shall inform the
\nAssessing Officer the investment made during the
\nrelevant year in such asset. <\/p>\n<\/div>\n\n
Also to clarify, where a notice under
\nsection 142, 143(2), 148, 153A or 153C of the Income-tax Act is issued
\non or after
\n30-06-2015, the declarant shall be eligible to declare
\nfull value of asset even if such asset (or part of such asset) is acquired
\nin the previous year relevant to the assessment year for which such
\nnotice is issued.<\/p>\n
<\/p>\n
Question No.9:<\/em><\/strong> Can
\na declaration be made of undisclosed foreign assets which have <\/em><\/strong>been assessed to tax and the case is
\npending before an Appellate <\/em><\/strong>Authority?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> As per section 65 of the Act, the declarant is not entitled to re-open any assessment or reassessment made under
\nthe Income-tax Act. Therefore, he is not entitled to avail the
\ntax compliance in respect of those assets. However, he can voluntarily
\ndeclare other undisclosed oreign assets which have been acquired or
\nmade from income not disclosed and consequently not assessed
\nunder the Income-tax Act.<\/p>\n <\/p>\n
Question No.10:<\/em><\/strong> Can a person against whom a search\/ survey operation has been <\/em><\/strong>initiated file voluntary declaration under
\nChapter VI of the Act?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> (a) The person is not eligible to make a declaration under
\nChapter VI if a search has been initiated and the
\ntime for issuance of notice under <\/p>\nsection 153A has not expired, even if such
\nnotice for the relevant assessment year has not been issued. In
\nthis case, however, the person is eligible to file a declaration in
\nrespect of an undisclosed foreign asset acquired in any previous year in
\nrelation to an assessment year which is prior to assessment years
\nrelevant for the purpose of notice under section 153A. <\/p>\n
(b) In case of survey operation the person
\nis barred from making adeclaration under
\nChapter VI in
\nrespect of an
\nundisclosed asset acquired in the previous year in which the
\nsurvey was conducted. The person is, however, eligible to make a
\ndeclaration in respect of an undisclosed asset acquired in any other
\nprevious year. <\/p>\n<\/div>\n
\n
Question
\nNo. 11: Where a search\/ survey operation was conducted and the assessment has
\nbeen completed but the undisclosed foreign asset was not taxed, then whether
\nsuch asset can be declared under Chapter VI of the Act?<\/em><\/strong> <\/p>\nAnswer:<\/strong>Yes, such undisclosed asset can be
\ndeclared under Chapter VI of the Act.<\/p>\n <\/p>\n
Question
\nNo.12: Whether a person is barred from voluntary declaration under Chapter VI
\nof the Act if any information has been received by the Government under DTAA?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong>As per section 71(d)(iii), the person
\ncannot make a declaration of an undisclosed foreign asset where the Central
\nGovernment has received an information in respect of such asset under the DTAA.
\nThe person is entitled for voluntary declaration in respect of other
\nundisclosed foreign assets for which no information has been received.<\/p>\n <\/p>\n
Question
\nNo.13: How would the person know that the Government has received information
\nof an undisclosed foreign asset held by him which will make the declaration
\nineligible?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong>The person may not know that the
\nGovernment has information about undisclosed foreign asset held by him if the
\nsame has not been communicated to him in any enquiry\/proceeding under the
\nIncome-tax Act. After the person has filed a declaration, which is to be filed
\nlatest by 30th<\/sup> September, 2015, he will be issued
\nintimation by the Principal Commissioner\/Commissioner by 31th<\/sup> October, 2015, whether any information has been received by
\nthe Government and consequently whether he is eligible to make the payment on
\nthe declaration made. If no information has been received up to 30th<\/sup> June, 2015 by the Government in respect of such asset the
\nperson will be allowed a time upto 31st<\/sup> December, 2015 for payment of tax and
\npenalty in respect of the declared asset.<\/p>\n There may be a case where person makes
\ndeclaration in respect of 5 assets whereas the Government has information about
\nonly 1 asset. In such situation the person will be eligible to declare the
\nbalance 4 assets under Chapter VI of the Act. In such case the declarant, on
\nreceipt of intimation by the Principal Commissioner\/Commissioner, shall revise
\nthe declaration made within 15 days of such receipt of intimation to exclude the asset which is
\nnot eligible for declaration. <\/p>\n<\/div>\n
\n
<\/p>\n
Tax and penalty on the eligible assets
\nunder the Act shall be payable in respect of the revised declaration by
\n31 st<\/sup> of December, 2015. In respect of the ineligible assets
\nprovisions of the Income-tax Act shall apply. (Please also see answer to question
\nno. 15)<\/p>\n <\/p>\n
Question No.14:<\/em><\/strong> What
\nare the consequences if no declaration under Chapter VI of the <\/em><\/strong>Act is made in respect of undisclosed
\nforeign assets acquired prior to<\/em><\/strong><\/p>\n the commencement of the Act?<\/em><\/strong><\/p>\n <\/p>\n
Answer:<\/strong> As per section 72(c), where any asset has been acquired prior
\nto the commencement of the Act and no declaration
\nunder Chapter VI of the <\/p>\n <\/p>\n
Act is made then such asset shall be
\ndeemed to have been acquired in the year in which it comes to the notice
\nof the Assessing Officer and the provisions of the Act shall apply
\naccordingly. India is expected to start receiving
\ninformation through Automatic Exchange of Information (AEOI) route under
\nFATCA from USA later in the year 2015. Further, under the
\nmultilateral agreement India will start receiving information from other
\ncountries under AEOI route from 2017 onwards. As at 18th<\/sup> March 2015, 58 jurisdictions (including India) have committed to share information
\nunder AEOI by 2017 and 36
\njurisdictions have committed
\nto share by
\n2018, including jurisdictions which
\nhave beneficial tax
\nregime. The multilateral agreement is expected to cover all the
\ncountries in the near future. The
\ninformation under the
\nAEOI will include
\ninformation of controlling persons (beneficial owners) of
\nthe asset. The possibility of discovery of an undisclosed asset may
\narise at any time in the future; say
\nfor example, information
\nof an immovable
\nproperty can be unearthed
\nif any utility
\nbills\/property tax or
\neven gardener\u2019s\/ caretaker\u2019s salary has been paid through
\nan existing or closed bank account. Therefore, if any information of
\nan undisclosed foreign asset acquired earlier, say in the year 1975,
\nfor $ 100,000 comes to the notice of an Assessing Officer later, say in the
\nyear 2020, when its value becomes, say, $ 5 Million, the liability
\nunder the Act amounting to 120 percent of the fair market value of the asset on the valuation
\ndate may arise in the year 2020, besides
\nprosecution and other consequences. In this case if the valuation date is in the
\nyear 2020 the amount of tax and penalty under the Act will be $ 6 Million.<\/p>\n <\/p>\n