[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 2nd of July, 2015
Notification
G.S.R. 529 (E).- In exercise of the powers conferred by sub-sections (1) and (2) of
section 85 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015 (22 of 2015), the Central Board of Direct Taxes with the approval of the
Central Government hereby makes the following rules, namely:-
1. Short title and commencement. ─ (1) These rules may be called the Black Money
(Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions. ─ (1) In these rules, unless the context otherwise requires,-
(a) “Act” means the Black Money (Undisclosed Foreign Income and Assets) and
Imposition of Tax Act, 2015 (22 of 2015);
(b) “Chapter” means a Chapter of the Act;
(c) “Form” means a Form appended to these rules;
(d) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
(e) “section” means a section of the Act.
(2) Words and expressions used and not defined in these rules but defined in the Act, the
Income-tax Act or the rules made thereunder, shall have the meanings respectively
assigned to them in those Acts and rules.
3. Fair market value. ─ (1) For the purposes of sub-section (2) of section 3 of the Act, the fair
market value of the assets shall be determined in the following manner, namely:-
(a)
value of bullion, jewellery or precious stone shall be the higher of,-
(I) its cost of acquisition; and
(II) the price that the bullion, jewellery or precious stone shall ordinarily fetch
if sold in the open market on the valuation date for which the assessee
may obtain a report from a valuer recognised by the Government of a
country or specified territory outside India or any of its agencies for the
purpose of valuation of bullion, jewellery or precious stone under any
regulation or law;
(b)
valuation of archaeological collections, drawings, paintings, sculptures or any
work of art (hereinafter referred to as artistic work) shall be the higher of,-
(I) its cost of acquisition; and
(II) the price that the artistic work shall ordinarily fetch if sold in the open
market on the valuation date for which the assessee may obtain a report
from a valuer recognised by the Government of a country or specified
territory outside India or any of its agencies for the purpose of valuation
of artistic work under any regulation or law;
(c)
valuation of shares and securities,—
(I) the fair market value of quoted share and securities shall be the higher
of,-
(i) its cost of acquisition; and
(ii) the price as determined in the following manner, namely:—
(A) the average of the lowest and highest price of such shares and
securities quoted on any established securities market on the
valuation date; or
(B) where on the valuation date there is no trading in such shares
and securities on any established securities market, average of
the lowest and highest price of such shares and securities on any
established securities market on a date immediately preceding
the valuation date when such shares and securities were traded
on such securities market;
(II) the fair market value of unquoted equity shares shall be the higher of,-
(i) its cost of acquisition; and
(ii) the value, on the valuation date, of such equity shares as determined
in the following manner, namely:—
the fair market value of unquoted equity shares = (A+B–L) x (PV),
(PE)
where,
A= book value of all the assets (other than bullion, jewellery, precious
stone, artistic work, shares, securities and immovable property) as
reduced by,- (i) any amount of income-tax paid, if any, less the
amount of income-tax refund claimed, if any, and (ii) any amount
shown as asset including the unamortised amount of deferred
expenditure which does not represent the value of any asset;
B= fair market value of bullion, jewellery, precious stone, artistic
work, shares, securities and immovable property as determined in
the manner provided in this rule;
L= book value of liabilities, but not including the following amounts,
namely:-
(i)
the paid-up capital in respect of equity shares;
(ii) the amount set apart for payment of dividends on preference
shares and equity shares;
(iii) reserves and surplus, by whatever name called, even if the
resulting figure is negative, other than those set apart
towards depreciation;
(iv) any amount representing provision for taxation, other than
amount of income-tax paid, if any, less the amount of
income-tax claimed as refund, if any, to the extent of the
excess over the tax payable with reference to the book profits
in accordance with the law applicable thereto;
(v) any amount representing provisions made for meeting
liabilities, other than ascertained liabilities;
(vi) any amount representing contingent liabilities other than
arrears of dividends payable in respect of cumulative
preference shares;
PE = total amount of paid up equity share capital as shown in the
balance-sheet;
PV= the paid up value of such equity shares;
(III) the fair market value of unquoted share and security other than equity
share in a company shall be the higher of,-
(i)
its cost of acquisition; and
(ii)
the price that the share or security shall ordinarily fetch if sold in
the open market on the valuation date for which the assessee may
obtain a report from a valuer recognised by the Government of a
country or specified territory outside India or any of its agencies
for the purpose of valuation of share and security under any
regulation or law;
(d)
the fair market value of an immovable property shall be higher of,-
(I) its cost of acquisition; and
(II) the price that the property shall ordinarily fetch if sold in the open market
on the valuation date for which the assessee may obtain a valuation
report from a valuer recognised by the Government of a country or
specified territory outside India in which the property is located or any of
its agencies for the purpose of valuation of immovable property under
any regulation or law;
(e)
value of an account with a bank shall be,-
(I) the sum of all the deposits made in the account with the bank since the
date of opening of the account; or
(II) where a declaration of such account has been made under Chapter VI and
the value of the account as computed under sub-clause (I) has been
charged to tax and penalty under that Chapter, the sum of all the deposits
made in the account with the bank since the date of such declaration:
Provided that where any deposit is made from the proceeds of any
withdrawal from the account, such deposit shall not be taken into
consideration while computing the value of the account.
(f)
value of an interest of a person in a partnership firm or in an association of
persons or a limited liability partnership of which he is a member shall be
determined in the manner specified in clause (g).
(g)
The net asset of the firm, association of persons or limited liability partnership
on the valuation date shall first be determined and the portion of the net asset
of the firm, association of persons or limited liability partnership as is equal to
the amount of its capital shall be allocated among its partners or members in
the proportion in which capital has been contributed by them and the residue
of the net asset shall be allocated among the partners or members in
accordance with the agreement of partnership or association for distribution
of assets in the event of dissolution of the firm or association, or, in the
absence of such agreement, in the proportion in which the partners or
members are entitled to share profits and the sum total of the amount so
allocated to a partner or member shall be treated as the value of the interest of
that partner or member in the partnership or association.
Explanation.- For the purposes of this clause the net asset of the firm,
association of persons or limited liability partnership shall be (A + B – L),
