INCOME TAX BREAKING: CBDT Instructions on Prosecution under the Black Money Act, 2015
The CBDT has amended its earlier Instruction dated 15.03.2022, issued under Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“BMA, 2015”) read with Section 119 of the Income-tax Act, 1961, relating to prosecution under Sections 49 and 50 of the BMA.
✅Earlier Position (as per Instruction dt. 15.03.2022): Prosecution under Sections 49/50 was not to be initiated where penalty under Sections 42/43 was not imposable in respect of foreign bank accounts having an aggregate balance not exceeding ₹5 lakh during the relevant previous year.
✅Amendment by Finance (No.2) Act, 2024 (w.e.f. 01.10.2024): The proviso to Sections 42/43 has been substituted to provide that no penalty shall apply in respect of assets (other than immovable property) where the aggregate value does not exceed ₹20 lakh at any time during the relevant previous year.
✅Revised Instruction (CBDT): It is now clarified that prosecution under Sections 49/50 shall also not be initiated in cases where penalty is not leviable under the amended proviso to Sections 42/43 i.e., in respect of foreign assets (other than immovable property) up to an aggregate value of ₹20 lakh.
✅ Thus, both penalty and prosecution provisions stand inapplicable in respect of minor-value foreign assets (excluding immovable property) not exceeding ₹20 lakh.
✅ Note: Immovable property remains outside the scope of this relaxation.
(Effective from 01.10.2024)
