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India: Undisclosed foreign bank accounts

India: Undisclosed foreign bank accounts

A taxpayer that is determined to be a “resident” and an “ordinary resident” in India pursuant to the Income Tax Act, 1961 and having assets located outside India must provide details about these assets and about the income earned outside India on the taxpayer’s individual income tax returns.


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Legislation (the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015) addresses such undisclosed foreign assets and income.

The taxpayer was found to have an undisclosed foreign bank account (the taxpayer held the bank account for tax years both before and after the law was enacted in 2015). The taxpayer claimed that he had inherited the bank account from his deceased mother. However, the taxpayer failed to disclose the account on his individual income tax returns or during subsequent years. The taxpayer did not participate in a one-time voluntary disclosure program.

When the authorities imposed penalties for the undisclosed bank account, the taxpayer asserted that the legislation did not apply retroactively. The Calcutta High Court dismissed the taxpayer’s petition to quash notices issued pursuant to the 2015 law.

Read a February 2019 report [PDF 732 KB] prepared by the KPMG member firm in India

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