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The Central Board of Direct Taxes issues the Black Money Rules to govern asset valuation, tax authorities, notices, appeals, and declarations under the Black Money Act. The rules apply to assessees holding undisclosed foreign income and assets. The rules specify asset valuation methods, tax authority designations, appeal procedures, tax arrears statements, and declaration forms. Assessees calculate the fair market value of assets using specific cost and market price rules. Assessees file appeals to the Commissioner (Appeals) in Form 2 with a fee of ten thousand rupees. Assessees file appeals to the Appellate Tribunal in Form 3 with a fee of twenty five thousand rupees. Assessees declare undisclosed foreign assets in Form 6 under section 59. The rules take effect on the date of publication in the Official Gazette.
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[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:-
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.
Definitions. ─ (1) In these rules, unless the context otherwise requires,-
(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.
(a) value of bullion, jewellery or precious stone shall be the higher of,-
(b) valuation of archaeological collections, drawings, paintings, sculptures or any work of art (hereinafter referred to as artistic work) shall be the higher of,-
(c) valuation of shares and securities,—
(I) the fair market value of quoted share and securities shall be the higher of,-
(II) the fair market value of unquoted equity shares shall be the higher of,-
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, named:-
- (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,-
(d) the fair market value of an immovable property shall be higher of,-
(e) value of an account with a bank shall be,-
(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), which shall be determined in the manner provided in sub-clause (II) of clause (c).
(h) valuation of any other asset shall be higher of,-
(2) Notwithstanding anything contained in sub-rule (1), where an asset (other than a bank account) was transferred before the valuation date the fair market value of such asset shall be higher of its cost of acquisition and the sale price: Provided that where such asset was transferred without consideration or inadequate consideration before the valuation date, the fair market value of the asset shall be higher of its cost of acquisition and the fair market value on the date of transfer.
(3) Where a new asset has been acquired or made out of consideration received on account of transfer of an old asset or withdrawal from a bank account, then the fair market value of the old asset or the bank account, as the case may be, determined in accordance with sub-rule (1) and sub-rule (2) shall be reduced by the amount of the consideration invested in the new asset. Illustration A house property (H1) located outside India was bought in 1997 for twenty lakh rupees. It was sold in 2001 for twenty five lakh rupees which were deposited in a foreign bank account (BA). In 2002 another house property (H2) was bought for thirty lakh rupees. The investment in H2 was made through withdrawal from BA. H2 has not been transferred before the valuation date and its value on the valuation date is fifty lakh rupees. Assuming that the value of BA as computed under Rule 3(1)(e) is seventy lakh rupees, the fair market value (FMV) of the assets shall be as below:
FMV of H1: (Higher of Rs. 20 lakh and 25 lakh) – Rs. 25 lakh (invested in BA) = Nil FMV of BA: Rs. 70 lakh – Rs. 30 lakh (invested in H2) = Rs. 40 lakh FMV of H2: (Higher of Rs. 30 lakh and 50 lakh) = Rs. 50 lakh
(4) The fair market value of an asset determined in a currency which is one of the permitted currencies designated by the Reserve Bank of India under the Foreign Exchange Management Regulations, shall be converted into Indian currency as per the reference rate of the Reserve Bank of India on the date of valuation.
(5) Where the fair market value of an asset is determined in a currency other than one of the permitted currencies designated by the Reserve Bank of India, then, such value shall be converted into United States Dollar on the date of valuation as per the rate specified by the Central Bank of the country or jurisdiction in which the asset is located and such value in United States Dollar shall be converted into Indian currency as per the reference rate of the Reserve Bank of India on the date of valuation: Provided that where the Central Bank of the country or jurisdiction in which the asset is located does not specify the rate of conversion from its local currency to United States Dollar then such rate shall be the one as specified by any other bank regulated under the laws of that country or jurisdiction.
Explanation 1.- For the purposes of this rule,-
Explanation 2.- For the purpose of determining the market value as on valuation date referred to in sub-rule (1), and for the purpose of conversion into Indian currency or conversion of foreign currency into United States Dollar and thereafter into Indian currency, the date shall be-
Tax authorities.- For the purposes of section 8, the tax authorities shall be the Assessing Officer, Joint Commissioner, Commissioner (Appeals), Commissioner or Principal Commissioner, Chief Commissioner or Principal Chief Commissioner.
Notice of demand. ─ Where any tax, interest or penalty is payable in consequence of any order passed under the provisions of the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form 1 specifying the sum so payable.
Appeal to Commissioner (Appeals). ─ (1) An appeal under sub-section (1) of section 15 to the Commissioner (Appeals) shall be made in Form 2.
(2) The form of appeal referred to in sub-rule (1), the grounds of appeal and the form of verification appended thereto relating to an assessee shall be signed and verified by the person who is authorised to sign the return of income under section 140 of the Income-tax Act, as applicable to the assessee.
(3) Every appeal filed under sub-section (1) of section 15 shall be accompanied by a fee of ten thousand rupees.
(4) No appeal under sub-section (1) of section 15 shall be admitted unless at the time of filing of the appeal the assessee has paid the tax alongwith penalty and interest thereon on the amount of liability which has not been objected to by the assessee.
(2) The memorandum of cross-objections under sub-section (4) of section 18 to the Appellate Tribunal shall be made in Form 4, and where the memorandum of cross objection is made by the assessee, the form of memorandum of cross-objections, the grounds of cross- objections and the form of verification appended thereto shall be signed by the person specified in sub-rule (2) of rule 6.
(3) Every appeal filed under sub-section (1) of section 18 shall be accompanied by a fee of twenty five thousand rupees.
Form of tax arrears.- A statement of tax arears under section 31 or section 33 shall be drawn up by the Tax Recovery Officer in Form 5.
Declaration of undisclosed asset located outside India under section 59.- (1) A declaration in respect of any undisclosed asset located outside India under section 59 of the Act shall be made in Form 6.
(2) The Principal Commissioner or the Commissioner shall grant an acknowledgement in Form 7 to the declarant within fifteen days of the submission of proof of payment of tax alongwith penalty by the declarant under sub-section (2) of section 63 of the Act in respect of the undisclosed asset located outside India.
Educational qualifications.- The educational qualifications for the purpose of clause (f) of sub-section (3) of section 78 shall be the same as those prescribed in rule 51 of the Income-tax Rules, 1962.
Authority in certain cases.- For the purposes of clause (c) of sub-section (4) of section 78, the authority shall be the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner having jurisdiction over the case in the proceedings connected with which the tax practitioner is alleged to be guilty of misconduct.
Rounding off of income, value of asset and tax. ─ For the purpose of section 79 the amount of undisclosed foreign income and asset computed in accordance with the Act and any amount payable or receivable by the assessee under the Act shall be rounded off to the nearest multiple of one hundred rupees or ten rupees, as the case may be and for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.
APPENDIX
FORM 1 [See rule 5] Notice of demand
To ……………………… ……………………….
Status………………… ………………………..
PAN….. ……………..
This is to give you notice that for the assessment year …………… a sum of Rs. ………...…….., details of which are given on the reverse, has been determined to be payable by you.
The amount should be paid to the Manager, authorised Bank or State Bank of India or Reserve Bank of India at …………………. within …………… days of the service of this notice. The previous approval of the Additional/ Joint Commissioner has been obtained for allowing a period of less than 30 days for the payment of the above sum.
If you do not pay the amount within the period specified above, proceedings for the recovery thereof will be taken in accordance with sections 30 to 39 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
If you intend to appeal against the assessment or penalty, you may present an appeal under section 15 of the Act, to the Commissioner (Appeals)…………. within thirty days of the receipt of this notice, in Form 2 as prescribed in rule 6, duly stamped and verified as laid down in that form.
The amount has become due as a result of the order of the Commissioner (Appeals) under section 15 of the Act. If you intend to appeal against the aforesaid order, you may present an appeal under section 18 of the Act to the Appellate Tribunal ……within sixty days of the receipt of that order, in Form 3, as prescribed in rule 7, duly stamped and verified as laid down in that form.
Place …………………
… ………………. Date…………..
Assessing Officer ..………………….. Address Notes:
FORM 2 [See rule 6(1)]
Appeal to the Commissioner (Appeals) Designation of the Commissioner (Appeals)
*No…………..of 20………………………
Name and address of the appellant
Permanent Account Number
Assessment year in connection with which the appeal is preferred
Assessing Officer passing the order appealed against
Section and sub-section of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, under which the Assessing Officer passed the order appealed against and the date of such order
Where the appeal relates to any assessment or penalty, the date of service of the relevant notice of demand
In any other case, the date of service of the intimation of the order appealed against
Section and sub-section of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, under which the appeal is preferred
Relief claimed in appeal
Amount of tax alongwith penalty and interest thereon, arising out of the order in which appeal is preferred, that is not objected to by the appellant in appeal
Whether the undisputed amount referred to in item 10 has been paid (if yes, give details of date of payment, challan number and amount paid)
**Where an appeal in relation to any other assessment year is pending in the case of the appellant with any Commissioner (Appeals), give the details as to the -
…………….. Signed (Appellant) STATEMENT OF FACTS GROUNDS OF APPEAL …………….. Signed (Appellant) Form of Verification I, ……………………….…., the appellant, do hereby declare that what is stated above is true to the best of my information and belief. Verified today the ………………….. day of …………………………
Place ………….
…….…………. Signature Notes:
FORM 3 [See rule 7(1)] Form of appeal to the Appellate Tribunal
In the Appellate Tribunal ……………………… *Appeal No……………..of 20……………………………… …………………………..
………………………… APPELLANT
versus
RESPONDENT
The State in which the assessment was made
Permanent Account Number of the assessee (Appellant/Respondent)
Section under which the order appealed against was passed
Assessment year in connection with which the appeal is preferred
Total undisclosed foreign income and asset assessed by the Assessing Officer for the assessment year referred to in item 4
The Assessing Officer passing the original order
Section of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 under which the Assessing Officer passed the order
The Commissioner (Appeals) passing the order under section 12/ 15/45
Date of communication of the order appealed against
Address to which notices may be sent to the appellant
Address to which notices may be sent to the respondent
Relief claimed in appeal
GROUNDS OF APPEAL 1.
etc.
……………………………
…….…………. Signed
Signed (Authorised representative, if any)
(Appellant)
Verification I, …………………., the appellant, do hereby declare that what is stated above is true to the best of my information and belief.
Verified today the ………………….. day of ………………………… Place ………….
…………………..
Signed
Notes:
FORM 4 [See rule 7(2)]
Form of memorandum of cross-objections to the Appellate Tribunal IN THE APPELLATE TRIBUNAL …………………………………………………………………… *Cross-objection No. …………………….. of ……………… - ……. **In Appeal No. ………………………of………………… - ……
………………………
Versus
…………………………..
APPELLANT
RESPONDENT
**Appeal No. allotted by the Tribunal to which memorandum of cross-objections relates 2. The State in which the assessment was made 3. Section under which the order appealed against was passed 4.
Assessment year in connection with which the memorandum of cross-objections is preferred 5.
Date of receipt of notice of appeal filed by the appellant to the Tribunal 6.
Address to which notices may be sent to the respondent (cross- objector) 7. Address to which notices may be sent to the appellant 8. †Relief claimed in the memorandum of cross-objections
†GROUNDS OF CROSS-OBJECTIONS
…………………………………
Signed
Signed (Authorised representative, if any)
(Respondent)
Verification I ……………………………………………, the respondent, do hereby declare that what is stated above is true to the best of my information and belief.
Verified today the …………. day of ……………………………..
………………………….. Signed Notes :
The memorandum of cross-objections must be in triplicate.
The memorandum of cross-objections should be written in English or, if the memorandum is filed in a Bench located in any such State as is for the time being notified by the President of the Appellate Tribunal for the purposes of rule 5A of the Income-tax (Appellate Tribunal) Rules, 1963, then, at the option of the respondent, in Hindi, and should set forth, concisely and under distinct heads, the cross-objections without any argument or narrative and such objections should be numbered consecutively.
*The number and year of memorandum of cross-objections will be filled in in the office of the Appellate Tribunal.
**The number and year of appeal as allotted by the office of the Tribunal and appearing in the notice of appeal received by the respondent is to be filled in here by the respondent.
†If the space provided is found insufficient, separate enclosures may be used for the purpose.
Form 5 [See rule 8]
Certificate under section 31 or 33 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
Office of the TRO…………………. Dated the…………………………... To ………………………………(PAN) ………………………………
[name of the place]
details of which are given on the reverse and the said Tax Recovery Officer has sent a certified copy of the said certificate to the undersigned under section 33(2) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 specifying a sum of Rs………….. which is to be recovered from you.
You are hereby directed to pay the above sum within 15 days of the receipt of this notice failing which the recovery shall be made in accordance with the provisions of section 31 to section 39 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the Second Schedule to the Income-tax Act, 1961 and the rules made thereunder.
In addition to the sums aforesaid, you will also be liable for all costs, charges and expenses incurred in respect of the services of this notice and of warrants and other processes and all other proceedings taken for realising the arrears.
SEAL
…………………….... Tax Recovery Officer
*Score out whichever paragraph is not applicable.
DETAILS OF AMOUNT IN ARREARS
Tax
Penalty u/s……………
Interest u/s……………
Any other sum (give details)
Total Amout (Rs.) Asst. year
Form 6 Tax compliance for undisclosed foreign asset [See rule 9(1)]
Form of declaration of undisclosed asset located outside India under section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
To, The Principal Commissioner/Commissioner ……………………………………
Sir/ Madam,
I hereby make a declaration under section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. I give below the necessary particulars:−
Name of the declarant ……………….………………………………………………………………………
Address: Office……………………………………………………………………………………………… ………………………………………………………………………………….………………..… E-mail…………………………………………………..Telephone No………………………….. Residence…………………………………………………………………………........................... ……………………………………………………………………………………….……………… E-mail…………………………………………………..Telephone No………..………………...
Permanent Account Number (PAN)
………..……………………… (In case PAN is not held, please apply for PAN and quote here)
……………………………… (If Revised provide date of filing original declaration)
……………………………….
…………….………
Statement of undisclosed asset located outside India (as per annexure)
Total amount of declaration of undisclosed asset located outside India Rs………………………..
Tax payable thereon (@ 30% of item 8)
Rs.………………..……...
Rs.…………………..…...
Rs.…………….………… (Attach proof of payment and provide details below)
Sl BSR Code of Bank Date of Deposit (DD/MM/YYYY) Serial Number of Challan Amount (Rs) (1) (2) (3) (4) (5) i
ii
I……………………………………………son/daughter/wife of Shri………………………………………................. (Full name in block letters)
(name of father/husband) solemnly declare that−
I further declare that I am making this declaration in my capacity as……………………………………………….
(designation) and that I am competent to make this declaration and verify it.
…………………………………………………..
(Signature) Place…………………. Date………………….. * Score out whichever is not applicable.
Annexure to Form 6
Statement of undisclosed assets located outside India
Description of assets declared (Use separate sheet in case of multiple assets in the same category)
(Provide separate computation if different from (f))
(Provide separate computation if different from (f) or (g))
(a) Gold
(b) Diamond (1 carat or more)
(c) Diamond (less than 1 carat) and other precious stones
Value __________
Value__________
(Provide separate computation if different from (e) or (f))
(a) Quoted shares and securities [Rule 3(1)(c)(I)]
(i) Description of security/share
- (B)
Number of securities/shares
- (C)
Type of security/share
(Provide separate computation if different from (v) or (vii))
(b) Unquoted equity share [Rule 3(1)(c)(II)] (attach valuation report)
(i) Description of share
- (B)
Number of shares
- (C)
Type of share
(Provide separate computation if different from (iv) or (vi))
(c) Unquoted shares and securities other than equity shares in a company [Rule 3(1)(c)(III)] (attach valuation report)
- (B)
Number of securities/shares
- (C)
Type of security/share
(Provide separate computation if different from (iv) or (vi))
(6) Any other asset
(a) Description of asset
(Provide separate computation if different from (d))
(where part of asset acquired from income already assessed under
the Income-tax Act) (to be provided in respect of each asset separately)
previous year relevant to the assessment year for which a notice
u/s 142/143(2)/148/153A/153C of the I.T. Act is issued ___________________
(to be taken to item 8 of the form)
……………………………………………………..
(Signature)
…………………………………………………….. (Name) Place…………………. Date………………….
NOTES:
Form 7 Tax compliance for undisclosed foreign asset [See rule 9(2)]
Acknowledgement of declaration of undisclosed foreign asset under Chapter VI of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
Office of the Principal Commissioner/Commissioner of Income-tax, ………………………………… …………………………………
This is to acknowledge that a declaration under section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been accepted in respect of the following:
…………………………………………………………..
…………………………………………………………..
…………………………………………………………...
……………………………………………………………
Total fair market value of all the assets declared
and accepted
Rs. ………………………………………………
Rs. ………………………………………………
Rs. ………………………………………………………
| Sl | BSR Code of Bank | Date of Deposit (DD/MM/YYYY) | Serial Number of Challan | Amount (Rs) |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) |
| i | ||||
| ii |
Date: ……………………
………………………………..
(Principal Commissioner/Commissioner of Income-tax)
NOTE: No acknowledgement will be issued unless the total amount of tax and penalty payable has been paid.