TMI BlogBlack Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 prepared by CBDT with the approval of the Central Government.X X X X Extracts X X X X X X X X Extracts X X X X ..... (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015); (b) Chapter means a Chapter of the Act; (c) Form means a Form appended to these rules; (d) Income-tax Act means the Income-tax Act, 1961 (43 of 1961); (e) section means a section of the Act. (2) Words and expressions used and not defined in these rules but defined in the Act, the Income-tax Act or the rules made thereunder, shall have the meanings respectively assigned to them in those Acts and rules. 3. Fair market value. ─ (1) For the purposes of sub-section (2) of section 3 of the Act , the fair market value of the assets shall be determined in the following manner, namely:- (a) value of bullion, jewellery or precious stone shall be the higher of,- (I) its cost of acquisition; and (II) the price that the bullion, jewellery or precious stone shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a report from a valuer recognised by the Government of a country or specified territory outside India or any of its agencies for the purpose of valuation of bullion, jewellery or precious stone under any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equity shares; (iii) reserves and surplus, by whatever name called, even if the resulting figure is negative, other than those set apart towards depreciation; (iv) any amount representing provision for taxation, other than amount of income-tax paid, if any, less the amount of income-tax claimed as refund, if any, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto; (v) any amount representing provisions made for meeting liabilities, other than ascertained liabilities; (vi) any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares; PE = total amount of paid up equity share capital as shown in the balance-sheet; PV= the paid up value of such equity shares; (III) the fair market value of unquoted share and security other than equity share in a company shall be the higher of,- (i) its cost of acquisition; and (ii) the price that the share or security shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a report from a valuer recognised by the Government of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nership or association. Explanation.- For the purposes of this clause the net asset of the firm, association of persons or limited liability partnership shall be (A + B L), which shall be determined in the manner provided in sub-clause (II) of clause (c). (h) valuation of any other asset shall be higher of,- (I) its cost of acquisition or the amount invested; and (II) the price that the asset would fetch if sold in the open market on the valuation date in an arm s-length transaction. (2) Notwithstanding anything contained in sub-rule (1), where an asset (other than a bank account) was transferred before the valuation date the fair market value of such asset shall be higher of its cost of acquisition and the sale price: Provided that where such asset was transferred without consideration or inadequate consideration before the valuation date, the fair market value of the asset shall be higher of its cost of acquisition and the fair market value on the date of transfer. (3) Where a new asset has been acquired or made out of consideration received on account of transfer of an old asset or withdrawal from a bank account, then the fair market value of the old ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngful annual value of shares traded on the exchange; (b) meaningful annual value of shares traded on the exchange with respect to an exchange means it has an annual value of shares traded on the exchange (or a predecessor exchange) exceeding one billion United States Dollar during each of the three calendar years immediately preceding the calendar year in which the determination is being made; (c) meaningful volume of trading on an on-going basis with respect to each class of shares means,- (i) trades in each such class are effected, other than in de minimis quantities, on one or more established securities markets on at least sixty business days during the prior calendar year; and (ii) the aggregate number of shares in each such class that are traded on such market or markets during the prior year are at least ten percent. of the average number of shares outstanding in that class during the prior calendar year; (d) quoted share or security means the share or security which has a meaningful volume of trading on an ongoing basis on an established securities market and is regularly quoted by dealers where they actively do offer to, and in fact do, purchase the share fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 6. (2) The memorandum of cross-objections under sub-section (4) of section 18 to the Appellate Tribunal shall be made in Form 4, and where the memorandum of cross objection is made by the assessee, the form of memorandum of cross-objections, the grounds of cross-objections and the form of verification appended thereto shall be signed by the person specified in sub-rule (2) of rule 6. (3) Every appeal filed under sub-section (1) of section 18 shall be accompanied by a fee of twenty five thousand rupees. 8. Form of tax arrears.- A statement of tax arears under section 31 or section 33 shall be drawn up by the Tax Recovery Officer in Form 5. 9. Declaration of undisclosed asset located outside India under section 59 .- (1) A declaration in respect of any undisclosed asset located outside India under section 59 of the Act shall be made in Form 6. (2) The Principal Commissioner or the Commissioner shall grant an acknowledgement in Form 7 to the declarant within fifteen days of the submission of proof of payment of tax alongwith penalty by the declarant under sub-section (2) of section 63 of the Act in respect of the undisclosed asset located ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and verified as laid down in that form. 5. The amount has become due as a result of the order of the Commissioner (Appeals) under section 15 of the Act. If you intend to appeal against the aforesaid order, you may present an appeal under section 18 of the Act to the Appellate Tribunal within sixty days of the receipt of that order, in Form 3, as prescribed in rule 7, duly stamped and verified as laid down in that form. Place . Assessing Officer Date .. .. Address Notes: 1. Delete inappropriate paragraphs and words. 2. If you wish to pay the amount by cheque, the cheque shall be drawn in favour of the Manager, authorised Bank or State Bank of India or Reserve Bank of India. FORM 2 [See rule 6(1)] Appeal to the Commissioner (Appeals) Designation of the Commissioner (Appeals) *No ..of 20 1. Name and address of the appellant 2. Permanent Account Number 3. Assessment year in connection with which the appeal is preferred 4. Assessing Officer passing the order appealed against 5. Section and sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... space provided herein is insufficient, separate enclosures may be used for the purpose. 6. **If appeals are pending in relation to more than one assessment year, separate particulars in respect of each assessment year may be given. 7. The memorandum of appeal shall be accompanied by a fee of ten thousand rupees. 8. The fee should be credited in a branch of the authorised Bank or a branch of the State Bank of India or a branch of the Reserve Bank of India. FORM 3 [See rule 7(1)] Form of appeal to the Appellate Tribunal In the Appellate Tribunal *Appeal No ..of 20 .. APPELLANT versus RESPONDENT 1. The State in which the assessment was made 2. Permanent Account Number of the assessee (Appellant/Respondent) 3. Section under which the order appealed against was passed 4. Assessment year in connection with which the appeal is preferred 5. Total undisclosed foreign income and asset assessed by the Assessing Officer for the assessment year referred to in item 4 6. The Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively. 5. *The number and year of appeal will be filled in the office of the Appellate Tribunal. 6. Delete the inapplicable columns. If the space provided is found insufficient, separate enclosures may be used for the purpose. FORM 4 [See rule 7(2)] Form of memorandum of cross-objections to the Appellate Tribunal IN THE APPELLATE TRIBUNAL *Cross-objection No. .. of **In Appeal No. of Versus .. APPELLANT RESPONDENT 1. **Appeal No. allotted by the Tribunal to which memorandum of cross-objections relates 2. The State in which the assessment was made 3. Section under which the order appealed against was passed 4. Assessment year in connection with which the memorandum of cross-objections is preferred 5. Date of receipt of notice of appeal filed by the appellant to the Tribunal 6. Address to which notices may be sent to the respondent (cross- objector) 7. Address to which notices may be sent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate to the undersigned under section 33(2) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 specifying a sum of Rs .. which is to be recovered from you. 2. You are hereby directed to pay the above sum within 15 days of the receipt of this notice failing which the recovery shall be made in accordance with the provisions of section 31 to section 39 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the Second Schedule to the Income-tax Act, 1961 and the rules made thereunder. 3. In addition to the sums aforesaid, you will also be liable for all costs, charges and expenses incurred in respect of the services of this notice and of warrants and other processes and all other proceedings taken for realising the arrears. SEAL .... Tax Recovery Officer *Score out whichever paragraph is not applicable. DETAILS OF AMOUNT IN ARREARS Amout (Rs.) Asst. year 1. Tax 2. Penalty u/s 3. Interest u/s 4. Any other sum (give details) 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) i ii 12. Balance tax payable ... VERIFICATION I son/daughter/wife of Shri ................. (Full name in block letters) (name of father/husband) solemnly declare that (a) the information given in this declaration is correct and complete to the best of my knowledge and belief; (b) my own undisclosed foreign asset and also any undisclosed foreign asset of other persons in respect of which I am chargeable to tax and income accruing or arising from assets held by me through any other person, for which I had failed to furnish a return under section 139 of the Income-tax Act, 1961/which I had fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... _________ (e) Account opening date ________________ (f) Sum of all credits in the account ________________ (g) Fair market Value as per Rule 3 ________________ (Provide separate computation if different from (f)) 2. Immovable property (attach valuation report) (a) Nature of property (land/building/flat etc.) ________________ (b) Address of the property ________________ (c) Country of location ________________ (d) Name(s) under which held ________________ (e) Date of acquisition ________________ (f) Total acquisition cost ________________ (g) Value as estimated by the valuer on valuation date ________________ (h) Fair Market value as per Rule 3 ________________ (Provide separate computation if different from (f) or (g)) 3. Jewellery (attach valuation report) (a) Gold (I) Purity ________, Weight _________, Value ____________ (II) Purity ________, Weight _________, Value ____________ (b) Diamond (1 carat or more) (I) Carat ________, Cut _______, Colour ______, Clarity_______, Value ________ (II) Carat ________, Cut _______, Colour ______, Clarity_______, Value _______ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s/shares __________________ (C) Type of security/share __________________ (ii) Country of location __________________ (iii) Name(s) under which held __________________ (iv) Cost of acquisition __________________ (v) Date(s) of acquisition __________________ (vi) Value as determined under Rule 3(1)(c)(III) __________________ (vii) Date of valuation __________________ (viii) Fair Market value as per Rule 3 __________________ (Provide separate computation if different from (iv) or (vi)) (6) Any other asset (a) Description of asset __________________ (b) Country of location __________________ (c) Name(s) under which held __________________ (d) Value as determined under Rule 3(1) __________________ (e) Date of valuation __________________ (f) Fair Market value as per Rule 3 __________________ (Provide separate computation if different from (d)) (7) Total fair market value of all the assets declared __________________ (8) Deduction as per section 5 of the Act ___________________ (where part of asset acquired from income already assessed under the Income-tax Act) (to be provided in respect ..... 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