Business Mantra News
- The Income Tax Authorities has issued enquiry notices to executives who have accounts in US in a move to put a curb overseas black money holders.
- India and United States have signed Foreign Account Tax Compliance Act (FATCA) in September 2015 and both have agreed to exchange information of black money holders in abroad.
- This move has been taken by the Income Tax Department after the United States shared information of black money holders under the enactment passed in US i.e. Foreign Account Tax Compliance Act.
- Notices are been issued to many top rankings executives who have returned from US and were suspected to keep black money in their US accounts.
- The Directorate General of Income Tax sent letters to executives calling an explanation over deposits, interest received and dividends received in their US Bank accounts.
- Notices are issued to those executives who have returned from US few years back and have failed to disclose the black money overseas and to regularize their asset in the US schedule, despite giving last opportunity by the US Government.
- These executives could be in trouble as they might be prosecuted under FATCA.
- A punishment of 20 years rigorous imprisonment along with 12% penalty is prescribed under the Undisclosed Foreign Income and Assets Act.
- FATCA is an amended enactment of Fair Credit Reporting Act. It was passed by US in 2010, primarily to protect consumers from identity theft.
Whether this mutual agreement between US and India helps to curb black money?