Amendments in section 42 and 43 of the Black Money Act, 2015 relating to penalty for failure to disclose foreign income and asset in the ITR (TAX ADMINISTRATION)

Union Budget 2024-25: Black Money Act Amendments Raise Non-Immovable Asset Reporting Threshold from Rs. 5 Lakh to Rs. 20 Lakh.

The Union Budget 2024-25 proposes amendments to sections 42 and 43 of the Black Money Act, 2015, concerning penalties for failing to disclose foreign income and assets in tax returns. These sections apply to residents, excluding those not ordinarily resident in India, who fail to report foreign assets or income. The penalty is ten lakh rupees, irrespective of asset value. Previously, exemptions were allowed for bank accounts with balances under five lakh rupees. The amendment raises this threshold to twenty lakh rupees for non-immovable assets, effective October 1, 2024, addressing stakeholder concerns about the low threshold.