A Critical Study of the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act 2015 With Special Reference to Double Taxation Avoidance Agreements Between India and Swiss Confederation

Abstract

There is no proper definition of black money in economic theory, but there are different terms such as parallel economy, black incomes, unaccounted economy, illegal economy and irregular economy, undisclosed income and many more are being used. The problem of black economy is deep rooted in almost all high tax jurisdictions, that is why it became an important issue of at all global forums. In world all the countries have felt the need of reducing and to curb the generation of black money and try to identify the area of tax evasion. The Government of India has been framing new policies and principles on the issue of black money and corruption in public life and has constituted several committees and sign many agreements with various countries and making SIT teams to look over the matter. Therefore, the Black Money Taxation Act, 2015 provides for separate taxation for any undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income Tax Act, 1961 but under the stringent provision of the Black Money Act. newlineThe main objective of the research is to explains various facets and dimensions of black money, tax evasion and their critical relationship with the policy and administration in India. It is an attempt has been made to discuss the causes leading to the generation and estimates of black money and tax evasion with new strategies adopted by the Government to tackle the issue. The research also deals with the source of Black money (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 asset held outside India newline