|ImageCourtesy:Wikipedia;Swiss National Bank Headquarters|
It is a known secret that many Indians and NRI's have enormous unaccounted sums of money in Swiss banks and many other European banks.
Recently various banks in Switzerland have asked their Indian customers to avail 'one-time compliance' window provided by Indian Tax officials for disclosing their undeclared foreign assets.
As per the new law there shall be thirty percent charge of tax on undisclosed foreign income and asset. In addition to the tax, there will be penalty also as specified under Section 61 of the Black Money Act.
Various reports say that Swiss banks and other European banks have asked their clients to furnish fresh undertakings with regard to the money put into their accounts with these banks. These undertaking specifically declares that the money they put into is taxed or accounted.
India is holding discussions and also signing various pacts with other nations on tax-information exchanges and strict regulatory and penal measures for such unaccounted parking of funds. Recently such a pact was signed by India with the US which will be operational from September 30 of 2015.