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With the compliance window for declaration of offshore assets ending on September 30, the RBI on Thursday clarified that no proceedings would be initiated under the Foreign Exchange Management Act, 1999 (FEMA) against declarants with assets held abroad on which taxes and penalties had been paid under the the Black Money Act.
The RBI said no permission would be required under FEMA to dispose of the asset and bring back the proceeds to India through banking channels within 180 days from the date of declaration.
In case the declarant wishes to hold the declared asset, she/he may apply to the apex bank within 180 days from the date of declaration if such permission is necessary. The RBI said it would deal with such applications under existing regulations.
In case such permission is not granted, the asset will have to be disposed of and proceeds brought back to India. The RBI said necessary notification under FEMA is being issued separately.
The RBI’s clarification may be aimed at nudging people to declare their undisclosed foreign income and assets.
PTI adds: Under the stringent black money law, a 90-day one-time voluntary compliance window has been provided to foreign asset holders to declare undisclosed wealth, pay a total of 60 per cent tax and penalty and escape harsh punishment, including a jail term.
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