Government of India has notified rules for calculating overseas income and assets under the stringent foreign black money law that came into force on July 1. The value of the overseas assets includes

• immovable property
• jewellery and precious stones
• archaeological collections and paintings
• shares and securities and shares in unlisted firms

The value of an overseas bank account will be the sum of all deposits made in the account since its opening.

The compliance window gives the account holder an opportunity to declare undisclosed assets abroad by September 30 and a further three months to pay the tax and penalty. The rate of tax will be 30 per cent, with an equal amount payable as penalty. Once the window closes, the rate of tax will remain at 30 per cent but the penalty will be three times the tax — or 90 per cent — besides possible criminal prosecution and jail term.

The foreign income and assets would be valued for calculation of tax and penalty both for the compliance period and beyond its expiry. The fair market value of an immovable property will be higher from the acquisition cost or the price that the property shall fetch in open market on the date of valuation.