Taxmann Law Relating to Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 By Raj K. Agarwal, Rakesh Gupta Edition March 2025

Law Relating to Black Money By Raj K. Agarwal Rakesh Gupta

Law Relating to Black Money By Raj K. Agarwal Rakesh Gupta

This book provides a comprehensive and updated analysis of India’s legal framework to tackle undisclosed foreign income and assets. This Act—popularly called the Black Money Act—mandates disclosure requirements, confers assessment powers and prescribes stringent penal and prosecution provisions. This Edition discusses crucial areas such as the scope of chargeability, assessment and reassessment procedures, penalties for non-disclosure, and prosecution for evasion. Given the evolving nature of black money legislation and limited judicial precedents, the book is a critical guide for clarifying uncertainties and interpreting grey areas of the law.

This book is intended for the following audience:

• Chartered Accountants & Tax Practitioners – Offers detailed insights into the procedures for assessment, penalties, prosecution, and the interplay with the Income-tax Act, 1961, enabling practitioners to advise clients more accurately
• Advocates & Corporate Lawyers – Provides clarity on legal nuances, prosecution risks, and procedural safeguards essential for legal counsel and litigation strategy
• Finance and Compliance Professionals – Highlights the compliance obligations for resident Indians holding foreign assets or earning foreign income and addresses potential issues when converting from Non-Resident to Resident/Ordinarily Resident
• Academicians & Researchers – Supplies extensive references, illustrative case scenarios, and critical commentary on statutory provisions—valuable for academic research and teaching
• Business Owners & High Net Worth Individuals (HNWIs) – Explains obligations, risks, and best practices to avoid penalties under the Black Money Act, particularly if holding or planning investments abroad

The Present Publication is the 4^th Edition | 2025 and has been amended by the Finance Act 2025. This book is authored by Dr Raj K. Agarwal & Dr Rakesh Gupta, with the following noteworthy features:

• [Latest Amendments] Incorporates all legislative changes introduced by the Finance Act 2025 to ensure readers have the most current legal positions and tax rates
• [Critical Analysis of Core Provisions] Each chapter offers an in-depth look at the scope and applicability of the Black Money Act, including charge, valuation, assessment, penalty, prosecution, and appeal mechanisms
• [Expert Commentary] Authored by two eminent professionals with decades of experience in direct taxes and representation before High Courts and the Supreme Court.
• [Practical Insights & Litigation Issues] Discusses emerging areas of litigation, interpretational dilemmas, and practical scenarios that practitioners and taxpayers commonly face
• [Extensive Referencing] Features relevant Circulars, Notifications, Rules, and forms, alongside cross-references to related provisions of the Income-tax Act 1961 and other key legislations
• [Valuation Rules] A dedicated section on valuation of foreign assets under the Black Money Act, clarifying the methodology for computing fair market value and addressing complex asset structures

The coverage of the book is as follows:

• Legislative Background & Intent
• Historical context behind the enactment of the Black Money Act
• Statement of Objects & Reasons; Rationale for a separate legislation distinct from the Income-tax Act, 1961
• Scope & Applicability
• Obligations for Resident Indians, particularly those transitioning from Non-Resident to Ordinarily Resident status
• Analysis of undisclosed foreign assets and income, including bank accounts, financial interests, and immovable properties
• Assessment & Reassessment
• Detailed procedures under Sections 10–14
• No time barring limit: implications for older transactions
• Framework for notices, satisfaction recording, and approval requirements
• Recovery, Penalties & Prosecution
• Recovery provisions (Sections 30–40); attachment of assets, garnishee notices, and cross-border recovery
• Penalties under Sections 41–47, including minimum penalties, defences, and quantum of fines
• Stringent prosecution provisions (Sections 48–58), discussion on abetment, and complexities of parallel proceedings
• Valuation Rules
• Fair market value concept for foreign assets
• Procedural requirements and compliance
• Valuation date mechanics and rule-based calculations
• Appellate & Revision Mechanisms
• Multi-layered appeal structure (Sections 15–29)
• Time limits, condonation of delay, and powers of appellate forums
• Revision processes and remedies available to assessees
• Forms, Circulars & Notifications
• Appendices containing relevant Forms (1–8) prescribed under the Act
• Consolidated CBDT Circulars and Notifications (updated up to 2025), offering official clarifications
• Other Relevant Laws
• Extracts of other statutes referenced in the Black Money Act (CPC, IPC, Companies Act, LLP Act, etc.), providing broader legal context

The structure of the book is as follows:

• Introductory Chapters – Laying out the legislative framework and objectives, followed by a systematic breakdown of the Act’s major provisions
• Section-by-Section Commentary – Each segment (Sections 1–88) is accompanied by ‘Notes on Clauses’ and ‘Significant Issues,’ helping readers navigate complex points of law
• Dedicated Chapters on Valuation & Procedural Aspects – Step-by-step guidance on valuation procedures and compliance forms
• Appendices & Reference Materials – Consolidated forms, rules, notifications, and circulars, facilitating ease of application and cross-referencing
• Practical Scenarios & FAQs – Interspersed throughout the text to illustrate practical cases, common pitfalls, and strategic solutions

About the author

Dr Raj K. Agarwal has been meritorious throughout his academic career. He has done M.Com, LL.B. and PhD. He is a Fellow member of the Institute of Chartered Accountants of India and Institute of Company Secretaries of India and an Associate Member of the Institute of Cost & Works Accountants of India. Having practised as Chartered Accountant for more than 25 years as a senior partner in M/s. Rakesh Raj & Associates, presently, he is practising as an advocate at Delhi High Court. He has broad experience in handling Income Tax search cases and has poured his practical experience into the form of this well-researched book. He has been associated with the academic activities of the Institute of Chartered Accountants of India, representing various committees of the Institute and with the Institute of Company Secretaries of India, representing its Northern India Regional Council as Chairman in 2003. He has contributed articles and addressed various income tax, accounting, and auditing seminars.

Dr Rakesh Gupta is a law graduate and Fellow Member of the Institute of Chartered Accountants of India and Institute of Company Secretaries of India and an Associate Member of the Institute of Cost & Works Accountants of India. He has done a PhD. He was awarded the gold medal in the LL.B. examination by the University. He and Dr Raj started practising as a chartered accountant in 1984 in the firm M/s. Rakesh Raj & Associates. He was selected as a Member of the Income Tax Appellate Tribunal in 2000. Afterwards, he resigned from the service and started practising as an advocate as a senior partner of M/s. RRA TaxIndia at Delhi representing income-tax cases before various High Courts and before the Supreme Court of India. He is a prolific speaker and has contributed to the profession by addressing various seminars regularly on legal and practical topics relating to Income Tax. He has contributed articles in various professional magazines, wrote columns in newspapers and made appearances on T.V. channels.