The ‘Undisclosed Foreign Income and Assets Act 2015’ tries to tackle the black money kept in other countries. Parliament has passed the bill and an Act- Black Money (Undisclosed Foreign Income and Assets or the UFIA) and Imposition of Tax Act, 2015 came into force. The Act became effective from July 1, 2015 with the starting of the one-time compliance window (initially it was prescribed to be effective from April 1, 2016).
The UFIA Act deals with the problem of black money that is kept in other countries by Indian residents. Black money in the form of undisclosed foreign income and assets comes under the purview of this law. The UFIA Act provide for imposition of tax on any undisclosed foreign income and asset held outside India.
‘Undisclosed foreign income and asset’ is defined as the total amount of undisclosed income of an assessee from a source located outside India and the value of an undisclosed asset located outside India.
Around Rs 4300 were disclsoed as a result of the UFIA initiative.
