ED makes first attachment under new black money prevention law

The attachment has been made under the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015

The Enforcement Directorate on Thursday attached Rs 21 crore belonging to a defence middleman Sanjay Bhandari under the new anti-black money law. This is the first seizure under the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 ever since it was passed.

The Enforcement Directorate that is probing a money laundering case attached Rs 21 crore belonging to Sanjay Bhandari after he failed to disclose foreign income and assets. The Rs 21 crore that has been attached was deemed illegal under the 2015 bill.

About the bill

The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 was introduced in Lok Sabha on March 20, 2015, by Finance Minister Arun Jaitley. The Bill applies to Indian residents and seeks to replace the Income Tax Act, 1961 for the taxation of foreign income. It penalises the concealment of foreign income and provides for criminal liability for attempting to evade tax in relation to foreign income.

A flat rate of 30 percent tax would apply to undisclosed foreign income or assets of the previous assessment year. No exemption, deduction or set off of any carried forward losses would apply. The bill came into force on April 1, 2016. The total undisclosed foreign income and asset of an individual would include income, from a source located outside India, which has not been disclosed in the tax returns filed, income from a source outside India for which no tax returns have been filed and value of an undisclosed asset located outside India.

Money belonging to arms dealer Sanjay Bhandari has been attached after the ED deemed that he concealed his foreign assets and income.

OneIndia News