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Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

This Act is India's dedicated statute for taxing and penalising undisclosed foreign income and assets held by residents, operating separately from the regular Income-tax Act, 1961. It was enacted specifically to address assets and income parked abroad and not disclosed to Indian tax authorities.

Key details
  • Section 3: charges tax at a flat rate of 30% on the value of undisclosed foreign income and assets (no slab-based exemption, unlike domestic income tax).
  • Section 41: prescribes a penalty of up to three times (300% of) the tax computed under Section 3 for concealment of foreign income/assets discovered during assessment — taking total exposure (tax plus penalty) as high as 120% of the asset's value.
  • Section 43: separately penalises failure to disclose foreign assets in the income tax return (even if the underlying income is not taxable), with a flat penalty of ₹10 lakh per year of non-disclosure, with an exemption if the aggregate foreign bank balance is below ₹5 lakh.
  • The Act also provides for prosecution, with rigorous imprisonment terms for wilful evasion involving foreign assets.
In the news

Tracked since August 15, 2026 · last seen August 16, 2026 · updates as the daily brief publishes

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