BLACK MONEY ACT 2015 • FOREIGN ASSET VALUATION

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015

The Black Money Act 2015 provides the statutory framework for taxation and disclosure of undisclosed foreign income and assets held by Indian residents. The framework makes accurate foreign asset FMV documentation and appropriate Schedule FA disclosure important components of cross-border tax compliance.

30% Tax

30% Penalty

10 Years Maximum Imprisonment

FMV Foreign Asset Valuation

STATUTORY FRAMEWORK

Understanding the Black Money Act 2015

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 is the successor legislation addressing undisclosed foreign assets. While the earlier wealth tax framework had limited application to foreign assets, the Black Money Act establishes a more comprehensive statutory framework.

The legislation covers undisclosed foreign income and assets and provides a stringent consequence framework for wilful tax evasion involving such assets.

30% Tax

30% Penalty

10 Years Maximum Imprisonment

FOREIGN ASSET SCOPE

What Qualifies as an Undisclosed Foreign Asset?

The Black Money Act applies to specified undisclosed foreign assets, making identification, valuation and disclosure important for Indian residents with overseas financial interests.

Foreign Property

Overseas residential, commercial and other foreign immovable property requiring appropriate FMV documentation.

PROPERTY • REAL ESTATE

Foreign Bank Accounts

Foreign financial accounts and related interests falling within the applicable foreign asset disclosure framework.

FINANCIAL ACCOUNTS

Foreign Equity

Interests in foreign companies, including unquoted foreign equity, requiring appropriate valuation methodology.

SHARES • SECURITIES

Foreign Trust Interests

Foreign beneficial interests and trust-related financial interests requiring appropriate disclosure.

TRUST • BENEFICIAL INTEREST

Foreign Financial Interests

Other relevant overseas financial interests requiring identification, valuation and Schedule FA reporting.

CROSS-BORDER ASSETS

PROFESSIONAL FOREIGN ASSET VALUATION

The Registered Valuer's Role in Black Money Act Compliance

Foreign assets can involve multiple jurisdictions, currencies, ownership structures and valuation methodologies. Professional valuation establishes a documented fair market value for the relevant asset.

A2Z Valuers provides valuation support for foreign property, foreign equity and other applicable financial interests, with the concluded value documented in an appropriate FMV certificate.

Foreign Property FMV

FMV assessment of overseas immovable property, including the INR equivalent using the applicable exchange-rate basis.

Foreign Equity FMV

Valuation of applicable foreign unquoted equity using an appropriate Rule 11UA-equivalent methodology.

FMV Documentation

A documented valuation basis supporting the reported value of the relevant foreign asset.

ITR • FOREIGN ASSET DISCLOSURE

Schedule FA — Foreign Assets Disclosure

Schedule FA in the ITR provides the disclosure framework for relevant foreign financial interests and assets. Professional FMV documentation can support the valuation of assets requiring an independent determination of value.

01 Foreign Bank Accounts

Disclosure of applicable foreign financial accounts and related information.

02 Foreign Property

Overseas immovable property and relevant ownership details.

03 Foreign Equity

Foreign company interests and applicable financial holdings.

04 Foreign Trust / Beneficial Interest

Relevant foreign trust and beneficial ownership interests.

FMV Documentation

Where valuation is required, the registered valuer's FMV certificate provides documented support for the value attributed to the relevant foreign asset.

CROSS-BORDER INFORMATION FRAMEWORK

FATCA, CRS and the Black Money Act

International financial-information exchange has significantly increased transparency around overseas financial interests and assets.

FATCA

The US Foreign Account Tax Compliance Act framework and the India-US Model 1 IGA facilitate financial-account information reporting to the Indian tax administration.

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CRS

The OECD Common Reporting Standard provides a framework for automatic exchange of financial account information between participating jurisdictions.

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BMA

Black Money Act

Foreign asset disclosure, appropriate Schedule FA reporting and professional FMV documentation form part of the compliance framework.

GOVERNMENT APPROVED VALUATION PRACTICE

Need a Foreign Asset FMV Valuation?

Get professional valuation support for foreign property, overseas equity, financial interests and Schedule FA disclosure.

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