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ImageCourtesy:Wikipedia;Swiss National Bank Headquarters
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (in short and hereinafter referred "Black Money Act") was brought into force as law in India by publishing the same in the Extraordinary Gazette of India on 27th of May, 2015 to make provisions to deal with the problem of black money that is undisclosed foreign income and assets, to lay down procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and asset held outside India. There is no exception for Jammu & Kashmir in this enactment. It extends to the whole of India.
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.

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