PRELIMINARYCentral
Section 2 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in hindi
Definitions.
In this Act, unless the context otherwise requires,—
- (1)"Appellate Tribunal" means the Appellate Tribunal constituted under section 252 of the Income-tax Act;
- (2)"assessee" means a 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, by whom tax in respect of undisclosed foreign income and assets, or any other sum of money, is payable under this Act and includes every person who is deemed to be an assessee in default under this Act;
- (3)"assessment" includes reassessment;
- (4)"assessment year" means the period of twelve months commencing on the 1st day of April every year;
- (5)"Board" means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
- (6)'Income-tax Act" means the Income-tax Act, 1961 (43 of 1961);
- (7)"participant" means—
- (a)a partner in relation to a firm; or
- (b)a member in relation to an association of persons or body of individuals;
- (8)"prescribed' means prescribed by rules made under this Act;
- (9)"previous year" means—
- (a)the period beginning with the date of setting up of a business and ending with the date of the closure of the business or the 31st day of March following the date of setting up of such business, whichever is earlier;
- (b)the period beginning with the date on which a new source of income comes into existence and ending with the date of closure of the business or the 31st day of March following the date on which such new source comes into existence, whichever is earlier;
- (c)the period beginning with the 1st day of the financial year and ending with the date of discontinuance of the business other than business referred to in clause (b) or dissolution of an unincorporated body or liquidation of a company, as the case may be; or
- (d)the period of twelve months commencing on the 1st day of April of the relevant year in any other case, and which immediately precedes the assessment year.
- (10)"resident" means a person who is resident in India within the meaning of Section 6 of the Income-tax Act;
- (11)"undisclosed asset located outside India" means an asset (including financial interest in any entity) located outside India, held by the assessee in his name or in respect of which he is a beneficial owner, and he has no explanation about the source of investment in such asset or the explanation given by him is in the opinion of the Assessing Officer unsatisfactory;
- (12)"undisclosed foreign income and asset" means the total amount of undisclosed income of an assessee from a source located outside India and the value of an undisclosed asset located outside India, referred to in section 4, and computed in the manner laid down in Section 5;
- (13)"unincorporated body" means—
- (a)a firm;
- (b)an association of persons; or
- (c)a body of individuals;
- (14)"value of an undisclosed asset" shall have the meaning assigned to it in sub-section (2) of Section 3;
- (15)all other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.
Summary
- This provision defines an undisclosed asset outside India as any asset held by a person in their name or as a beneficial owner where they have no satisfactory explanation for the source of money used to buy it.
- It explains that an assessee is a person who was a resident of India in the year they earned the foreign income or acquired the hidden asset.
- It defines an assessment as the process of officially determining tax, and it clarifies that this term also includes a reassessment.
- It clarifies that an assessment year is a period of twelve months that starts on the 1st day of April every year.
- It defines the previous year as the timeframe during which income is earned, such as a twelve month period or the time from starting a business until the end of March.
- It states that any words used in this law but not specifically defined here will take their meaning from the standard Income tax Act.
Practical examples
1Vikram is the beneficial owner of a luxury yacht in Dubai, meaning he enjoys the use of it and paid for it, even though the title is in his brother's name. Under Section 2, because Vikram cannot prove he used taxed income to buy it, the yacht is considered an undisclosed asset located outside India.
2Deepa started a consulting business in London on June 1, 2022. Under Section 2, her previous year for tax purposes begins on that June date and ends on March 31, 2023.
FAQ
1. Who is considered a beneficial owner under Section 2 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Under Section 2, a person is a beneficial owner if they hold an interest in an asset located outside India, even if the asset is not in their name, provided they cannot satisfactorily explain the source of the investment.
2. Does the term assessment include a second look or reassessment under Section 2 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Yes, Section 2 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 specifically states that assessment includes reassessment.
3. How is an undisclosed foreign income and asset calculated according to the definitions in Section 2 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
According to Section 2, it is the total amount of hidden income and asset value calculated using the specific methods found in Section 4 and Section 5 of the same Act.
Test yourself
Q1.Under Section 2 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what must happen for an asset to be called undisclosed?
Q2.What is the definition of an assessment year according to Section 2 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Q3.If a term is used in the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 but not defined in Section 2, where should one look for the definition?
Q4.Under Section 2 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, who is an assessee?