Statutory Scope of The Black Money Act, 2015
The enactment of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 introduced stringent penalties, prosecutions, and statutory valuation mechanisms for undisclosed offshore and domestic assets. Under Section 3(1), tax is charged on the value of undisclosed assets computed in accordance with the prescribed rules.
Determining Fair Market Value Under Rule 3
Rule 3 of the Black Money Rules establishes specific valuation parameters:
- Immovable Property: Value is the higher of cost of acquisition or the price that the property would ordinarily fetch in the open market on the valuation date, as determined by a certified Registered Valuer.
- Unquoted Equity Shares: Computed via formulaic breakup value considering the market value of underlying real estate, securities, and financial assets.
- Bank Accounts: The sum of all deposits made in the account since its opening, unless explained to the satisfaction of tax authorities.
"Valuing assets under the Black Money Act demands exhaustive forensic verification, international cross-border exchange rate conversions (RBI reference rates), and meticulous title documentation."
As an approved valuer under CBDT and the Black Money Act, Sekh Tarik Anowar provides court-tested appraisal reports accepted by the Directorate General of Income Tax (Investigation) and statutory appellate authorities.