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Section 50 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India.

If any person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) or sub-section (5) of section 139 of that Act, wilfully fails to furnish in such return any information relating to anasset (including financial interest in any entity) located outside India, held by him, as a beneficial owner or otherwise or in which he was a beneficiary, at any time during such previous year, or disclose any income from a source outside India, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.

Summary

This rule applies to Indian residents who have filed their tax returns but left out details about foreign assets.
If a person is an owner or a beneficiary of an asset outside India, they must disclose it in their return.
Purposely failing to disclose income from a source outside India in the return is also a crime.
The failure to provide this information must be wilful, meaning it was done on purpose.
The punishment is rigorous imprisonment for a period between six months and seven years.
In addition to jail time, the person will also be required to pay a fine.

Practical examples

1Mrs. Khan files her tax return on time but leaves the section about her foreign bank account blank because she doesn't want the government to know about it. She can be jailed for up to seven years.

2An investor has a 10 percent financial interest in a company in Singapore. He files his return but "forgets" to mention this interest. If this is found to be wilful, he faces rigorous imprisonment and a fine.

FAQ

1. Does Section 50 of the Black Money Act, 2015, apply if I am the beneficiary but not the owner of a foreign asset?

Yes, Section 50 of the Black Money Act, 2015, covers assets held as a beneficial owner or those in which the person was a beneficiary.

2. Is a fine mandatory under Section 50 of the Black Money Act, 2015?

Yes, Section 50 of the Black Money Act, 2015, states the punishment includes rigorous imprisonment and with fine.

Test yourself

Q1.Under Section 50 of the Black Money Act, 2015, what is the minimum period of rigorous imprisonment for hiding foreign asset info?

Q2.Section 50 of the Black Money Act, 2015, applies to people who have furnished their return under which Act?

Q3.Unlike Section 49, Section 50 of the Black Money Act, 2015, specifically targets people who:

Q4.Under Section 50 of the Black Money Act, 2015, "financial interest in any entity" located outside India is:

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