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Key Words:

The topic deals with:

I. Black Money as defined by the Act 2015 and Registration procedure with income tax authority (Rules 2015),
II. Rule 2015 Form 6 complied Statement of undisclosed assets of Immovable Property,
III. Works of Art,
IV. Shares and securities, including partnership firms etc.
V. Any other assets,
VI. Jewellery Valuation and
VII. Author's view

I. This article is with reference to The Black Money (Undisclosed foreign income and assets) Imposition of tax Act 2015 to be read with Rules 2015. The Act and Rules are to make provisions to deal with the problem of the Black Money that is undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and assets held outside India and for matters connected therewith or incidental thereto.

The Black Money is defined as Undisclosed Foreign Income and Assets. The Preliminary Section 2(11) of the Act defines 'Undisclosed asset located outside India' means an asset (Including financial interest in any entity) located outside India, held by the assessee {(a person (or property that is assessed to income tax)} in his name or in respect of which he is a beneficial owner, and he has no explanation about the source of investment in such an asset or the explanation given by him is in the opinion of the ‘Assessing officer’ unsatisfactory.

'Value of an undisclosed asset' means the Fair Market Value (FMV) of an asset (Including financial interest in any entity) determined in such manner {(Chapter II. S (3) (2) of the Act) read with Rule 3 of Rules 2015}.

The Principal Commissioner or Commissioner of Income tax Department shall maintain a register. Any person who is registered as a valuer u/s 34 AB of the Wealth Tax Act 1957 may apply to the jurisdictional Principal Commissioner or Commissioner for being approved as Valuer u/s 77 (1) of the  Act 2015. An application for approval shall be in Form 8, accompanied by a fee of rupee five thousand which shall not be refunded. Valuer fee is yet to be notified (as on June 2017).

Any assessee who is entitled or required to attend  before any tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, May attend through a valuer approved by the Income-tax Authority.

II. Rule 3: The Fair Market Value of an Immovable property shall be higher of, -

(I) its cost of acquisition and

(II) the price that the property shall ordinarily fetch if sold in the  open market on the valuation date for which the assessee may obtain a valuation report from a valuer recognized by the Government of a country or specified territory outside India in which the property is located or any of its agencies for the purpose of valuation of immovable property under any regulation or law.

Immovable property: Rule 3 (1) (d).(attach valuation report): Annexure to Form 6:Statement of undisclosed assets:

(a) Nature of Property (Land/Building/Flat, etc.): ----------------------------------
(b) Address of the property. : ---------------------------------
(c) Country of location
(d) Name(s) under which held : -----------------------------------
(e) Date of acquisition : ------------------------------------
(f) Total acquisition cost : -----------------------------------
(g) Value as estimated by the valuer on valuation date: -------------------------
(h) Fair Market Value as per Rule 3  

(Provide separate computation if different from (f) or (g).  

III. Rule 3 (1) (b) valuation of archaeological collections, drawings, paintings, sculptures or any work of art (hereinafter referred to as artistic work) shall be the higher of,-

(I) its cost of acquisition and

(II) the price that artistic works shall ordinarily fetch if sol din the open market on the valuation date for which the assessee may obtain a valuation report from a valuer recognized by the Government of a country or specified territory outside India in which the property is located or any of its agencies for the purpose of valuation of artistic works under any regulation or law.

(a) Nature of Artistic Works : ----------------------------------
(b) Country of location : -----------------------------------
(c) Name(s) under which held : -----------------------------------
(d) Date of acquisition : ------------------------------------
(e) Cost of acquisition : -----------------------------------
(f) Value as estimated by the valuer on valuation date: -------------------------
(g) Fair Market Value as per Rule 3

(Provide separate computation if different from (e) or (f).

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Category Income Tax, Other Articles by - A.Mohammed Ibrahim 



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