In the second round of clarifications on the unaccounted money law next week, the government is likely to ask those holding such funds to make based on their income expectations from more than 10 years old, in case of unavailability of records.

This will be part of about two dozen frequently asked questions (FAQs) the Department of Revenue will issue on the Undisclosed Foreign Income and Assets Act, popularly known as the black money Act, as well as on a three-month compliance window under the law.

“We are almost ready with the second set of and will be releasing that within the next four-five days. We were delayed, as we will be addressing more queries that came up based on an interaction session in Mumbai on Wednesday,” said a government official.

Many people have enquired about the unavailability of old records with the foreign banks. On this, the official said, “On the unavailability of old information, we cannot do anything much on that. We will be asking people to make disclosures based on the expectation of income in case of unavailability of records older than 10 years…Based on the extent of their disclosures, they will be given relief.”

On whether income will be considered undisclosed if tax liability was outside India, the tax department will likely clarify that such income will not be considered undisclosed.

Another issue to be clarified is that regarding the place of effective management. The government will clarify if the president or chief executive of the company concerned is in India and whether the Act will apply to that person or not.

Even as there is only a month left for the compliance window to shut, just one disclosure of Rs 70-80 crore has been made so far. The government expects disclosures regarding unaccounted foreign money to rise with the release of the FAQs. The three-month window closes on September 30.

Earlier, the revenue department had released 32 FAQs on the new law, the compliance window, and penalties under the law. There is a 120 per cent penalty, along with taxes and a jail term, for undeclared wealth or assets abroad, once the three-month compliance window ends. During the window, the penalty and taxes combined will be 60 per cent of the value of the assets declared, with no jail term, as well as immunity from certain laws.

While the government says the should not be used to harass those making declarations in this regard, adding the information disclosed should be kept confidential, it wants the law to be harsh.

In his Independence Day speech, Prime Minister had said, “People complain we have passed a stringent law, that officers would harass them…doctors also warn us about the side effects of injections. Similarly, this disease is so serious that if we want a treatment, we will have to also bear the side effects…while bearing the side effects, we are moving forward against black money.”

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Disclosures may be linked to returns seen on black funds