The income tax (I-T) department is scrutinising the declarations of 60 individuals, who, it believes, had made partial disclosure under the black money compliance window last year. These persons might face prosecution, which could result in forfeiture of assets under Income Tax Act.
The I-T department found huge mismatch between the declarations and the assets owned by them outside India.
Last year, a total Rs 4,417 crore was declared by 638 individuals under the Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, which promised immunity by paying 30 per cent tax and another 30 per cent as penalty. The black money Act had, for the first time, allowed levy of tax in India on assets kept abroad. Tax sleuths are believed to have obtained data about these foreign accounts from various tax havens and have tallied it with disclosures made by the declarants.
The I-T law allows tax authorities to go back 16 years in the case of illicit foreign wealth. The government had recently signed information-sharing pacts with 90 countries, covering automatic exchange of information helping the taxmen to collate more data. For those caught with undeclared overseas assets, the black money law provides for imprisonment, which could be up to 10 years. Plus, the violator will have to pay 30 per cent tax and a penalty of 90 cent, effectively losing all of the undeclared wealth and more, if caught.