FM bowls a googly: Living on the edge with widening black money net

A threat of getting prosecuted under both Income Tax Act and Black Money Act

The Union Budget has expanded the scope of the Black Money (Undisclosed Foreign Income and Assets) And Imposition of Tax Act, 2015 (BMA), to include non-residents who acquired a foreign asset or had income which was not disclosed. The changes will come into effect retrospectively from July 1, 2015. 

“The proposed retrospective amendment may create legal issues for people who have subsequently become non-resident and gone outside the legal jurisdiction of India before the BMA came into operation in July 2015,” says Sanjay Sanghvi, partner, Khaitan & Co. 

Tax experts believe the amendment showcases the current government’s intention to put