The government of India has notified September 30 2015 as the cut-off date for the compliance window and making disclosures under the new law on black money. According to the official statement from Finance Ministry, a person person may make a declaration in respect of an undisclosed asset located outside India under the compliance provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black Money Act) before or on September 30. 2015.

Those who make the disclosure during this notified period will have further 3 months’ time i.e. till 31st December 2015 to pay the taxes and the penalty on their foreign income and assets. The Bill to enact the proposed new law was passed by Parliament in its Budget Session. The Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015 was passed by the parliament in May 2015.

According to the act, a flat rate of 30 per cent tax would apply to undisclosed foreign income or assets of the previous assessment year.  No exemption, deduction or set off of any carried forward losses (as provided under the IT Act) would apply.  This would apply from April 1, 2016 onwards.