• The Union Budget 2024-25 proposed an important amendment to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act. The amendment focuses on easing the reporting requirements for individuals who own foreign assets.
• Under this amendment, individuals will not be penalized for not reporting foreign assets, provided the value of these assets is up to Rs. 20 lakh. This is a significant move to make compliance easier for smaller asset holders and reduce the burden on taxpayers who own relatively low-value foreign assets.
• This proposal seeks to balance stricter enforcement on larger, undisclosed foreign assets while relaxing penalties for smaller amounts, encouraging greater compliance with the law.
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