Government will provide a short window of a "few months" to income tax assesses to come clean by declaring their money and assets stashed abroad, pay tax and penalty and escape jail under the proposed tough law to unearth black money abroad.
The Union Cabinet last night approved the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015 with a view to put in place a legal framework to unearth black money and illicit assets stashed abroad.
It provides for a maximum of ten years rigorous imprisonment for offenders, who conceal income and assets and indulge in evasion in relation to foreign assets.
Under the provisions of the new Bill, the offence will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission for resolution of disputes.
There will also be a penalty at the rate of 300 per cent of taxes on the concealed income and assets.
"The dates for declaring the overseas assets will be notified after the passage of the bill on the black money by Parliament," a senior Finance Ministry official said today.
The assesses will be given a few months time to declare their overseas assets, the official said, adding the bill would also provide for a rigorous jail term of 10 years for concealment of such income.
The proposal to come out with a new law on the black money was mooted by Finance Minister Arun Jaitley in his budget speech.
