Assessment Under Black Money Act | Savlana Init

Black Money Act · Assessment

Black Money Act Assessment — Notice Received. Expertly Handled.

Received an assessment notice under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015? We analyse the foreign asset position, explain FATCA/CRS data, prepare a comprehensive Section 10 reply, and represent you before the Assessing Officer.

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 is a standalone legislation imposing a flat 30% tax on undisclosed foreign assets and income of Indian residents, plus a mandatory 90% penalty — for a combined liability of 57% of the undisclosed foreign asset's fair market value. Criminal prosecution under Sections 49 and 50 adds rigorous imprisonment of 3 to 10 years on top of the civil liability. It is the most severe tax enforcement regime in India for undisclosed offshore holdings.

Assessments are initiated when the Assessing Officer receives information through automatic information exchange — FATCA (from US financial institutions), CRS (Common Reporting Standard from OECD countries), bilateral treaty exchanges, or through search and seizure operations. The officer issues a Section 10 notice giving the taxpayer an opportunity to explain the foreign asset or income position. The taxpayer's response at this stage sets the entire trajectory of the assessment — a strong, well-documented reply can limit or close the assessment; a weak or absent reply almost inevitably results in a large confirmed demand.

We provide specialist Black Money Act advisory from the first notice onwards — combining income tax knowledge with international tax expertise, FEMA compliance understanding, and deep familiarity with foreign asset documentation requirements.

Our Black Money Act Assessment Services

Section 10 Notice Analysis

Detailed review of the assessment notice — the foreign income or asset alleged, assessment year, information basis (FATCA/CRS/treaty), and applicable legal provisions.

Foreign Asset Position Assessment

Complete review of the taxpayer's foreign asset position — bank accounts, investments, immovable property abroad, and beneficial interests in foreign entities.

Schedule FA Compliance Review

Review of Schedule FA disclosures in filed ITRs — identifying omissions or underreporting the notice may relate to.

Section 10 Notice Reply

Comprehensive written reply explaining the foreign asset position with documentary evidence, source of funds, and legal submissions.

FATCA & CRS Data Response

Advisory on automatic exchange information received by the department — and preparation of the explanatory response.

Voluntary Disclosure Advisory

Advisory on voluntary disclosure before or during assessment — to mitigate penalty and criminal prosecution risk.

Assessment Hearing Representation

Specialist CA representation at the Section 10 hearing — oral submissions, foreign documentation, and legal arguments.

Assessment Order Review

Review of the Section 10(3) assessment order — and advisory on Section 15 CIT(A) appeal within 45 days.

Our Process

Notice & Foreign Asset Review

Section 10 notice reviewed and foreign asset position completely assessed — FATCA/CRS data and Schedule FA disclosure history evaluated.

Legal Strategy

Residential status confirmed. Source of funds documented. Defences identified — disclosed income, FEMA-compliant remittance, prior Schedule FA disclosure.

Reply Preparation

Comprehensive reply drafted with foreign asset documentation, source of funds evidence, and legal submissions on assessability and penalty.

Assessment Hearing

Specialist CA attends the hearing — oral submissions, documentary evidence, and officer queries responded to on record.

Post-Assessment Advisory

Assessment order reviewed within 45-day appeal window — Section 15 appeal strategy and pre-deposit advisory provided immediately.

Why It Matters

✓Section 10 notice strategy-first — full analysis before any response

✓Foreign asset position completely mapped — no unexplained holdings

✓FATCA/CRS automatic exchange data reviewed and correctly explained

✓Schedule FA disclosure history reviewed — prior filings identified

✓Reply with source of funds documentation — legitimate holdings established

✓Assessment hearing attended with specialist Black Money Act expertise

✓Voluntary disclosure assessed for penalty and prosecution risk reduction

✓Post-assessment appeal filed within 45-day Section 15 limitation

Frequently Asked Questions

The Black Money Act is a standalone law taxing undisclosed foreign income and assets of Indian residents at 30% flat tax plus 90% penalty (27% of asset FMV) — a combined 57% of the undisclosed asset value. It is separate from the Income Tax Act with its own assessment, penalty, and criminal prosecution framework.

Assessments are triggered by: FATCA data from US financial institutions; CRS data from OECD countries; bilateral treaty information exchange; discrepancy between Schedule FA disclosures and foreign data received; or search and seizure revealing foreign assets.

30% flat tax on the fair market value of undisclosed foreign income or assets in the relevant assessment year. Plus 90% of the tax as mandatory penalty under Section 41 — totalling 57% of the undisclosed asset FMV.

Yes. Section 49 makes wilful evasion punishable with 3 to 10 years rigorous imprisonment plus fine. Section 50 criminalises wilful failure to disclose foreign assets in Schedule FA. Criminal prosecution is in addition to the civil tax and penalty.

Yes. Where the taxpayer demonstrates the foreign asset was acquired from disclosed, taxed Indian income or from a period of non-residence, the asset may not be assessable. Documentary evidence of source of funds and acquisition history is critical.

Section 15: first appeal to CIT(A) within 45 days. Section 16: second appeal to ITAT within 60 days. Section 17: High Court appeal on questions of law within 120 days.

Received a Black Money Act assessment notice?

We analyse your foreign asset position, prepare a comprehensive Section 10 reply, represent you at the hearing, and advise on the post-assessment strategy — specialist Black Money Act expertise.