Black Money Act 2.0 Coming Soon? Govt Sets Up Panel to Review and Align It with the Income Tax Act
The government has set up a panel to review and update the Black Money Act, 2015, aiming to align it with the Income Tax Act and pave the way for a revised “Black Money Act 2.0.”
Black - money - act - Taxscan
Black - money - act - Taxscan
The Government of India has started a major review of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, commonly called the Black Money Act (BMA).
The review aims to update the decade-old law, fix gaps in enforcement, and bring its provisions closer to the Income Tax Act, 1961. The move could lead to a revised version of the law that many are calling “Black Money Act 2.0.”
The panel set up by the Central Board of Direct Taxes (CBDT) is being led by Amal Pusp, Principal Chief Commissioner of Income Tax for Uttar Pradesh (East). Another internal committee, chaired by Jayaram Raipura, Chief Commissioner of Income Tax, has been tasked with improving scrutiny and assessment procedures under the Act.
Both panels will study how the law has worked so far and recommend changes that make it more practical for enforcement.
The Black Money Act was introduced in 2015 by the Narendra Modi government as one of its flagship anti-corruption measures. The law was designed to detect and tax undisclosed foreign income and assets, impose heavy penalties, and initiate prosecution for non-disclosure. It was expected to bring back illegal overseas wealth and deter tax evasion through offshore accounts.
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However, officials and experts say the law has faced challenges in implementation. The BMA allows retrospective taxation, meaning that even foreign assets acquired years before the law came into effect can be taxed once discovered.
This has caused legal and procedural complications. The penalties are also steep. The Act levies a 30 percent tax and an additional 90 percent penalty, making the total liability 120 percent of the undisclosed amount.
In the Union Budget 2024, the government introduced a key amendment to the BMA. It exempted cases where undisclosed foreign assets are valued below Rs. 20 lakh, providing relief to small taxpayers. Now, the review panels are expected to look deeper into issues such as penalty rates, prosecution procedures, and how to align the BMA with the more balanced framework of the Income Tax Act.
In the past 10 years, the government has recovered Rs. 35,104 crore under the Black Money Act. Despite this, experts believe the law needs modernization to improve its effectiveness and fairness. The review could result in a more streamlined and transparent Black Money Act 2.0, focused on efficiency, data accuracy, and legal clarity.
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