Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in hindi
- (1)The Tax Recovery Officer may, in a case where an assessee has property in a country or a specified territory outside India, forward a certificate to the Board for recovery of the tax arrears from the assessee, where the Central Government or any specified association in India has entered into an agreement with that country or territory under section 90 or section 90A of the Income-tax Act or under sub-sections (1), (2) or sub-section (4) of section 73 of this Act, as the case may be, for the purposes of recovery of tax.
- (2)On receipt of the certificate under sub-section (3) from the Tax Recovery Officer, the Board may take such action thereon as it may deem appropriate having regard to the terms of the agreement with such country or a specified territory.
Summary
- Tax authorities can recover dues even if the assessee's property is located outside of India.
- To start this, the Tax Recovery Officer sends a certificate detailing the arrears to the Board.
- This process is only possible if India has a tax agreement with that foreign country or territory.
- These agreements are typically made under the Income-tax Act or specifically under this 2015 Act.
- Once the Board receives the certificate, it takes the appropriate action allowed by the terms of the international agreement.
Practical examples
FAQ
1. Can the Indian government recover tax from properties abroad under Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Yes, the Tax Recovery Officer can initiate this by sending a certificate to the Board under Section 38 of the Black Money Act.
2. What is required for foreign recovery to happen under Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
There must be an agreement between the Central Government and the foreign country or territory for tax recovery purposes as per Section 38 of the Act.
3. Who does the Tax Recovery Officer contact to start international recovery under Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
The Officer forwards a certificate to the Board, which then takes action under Section 38 of the 2015 Act.
Test yourself
Q1.Under Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what must the Tax Recovery Officer do first to recover tax from foreign property?
Q2.Which section of the 2015 Act provides for the agreements mentioned in Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Q3.Who determines the "appropriate action" to be taken once the certificate is received under Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Q4.According to Section 38 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the Board's action must have regard to what?