Compliance Window - CBDT clarifies no immunity to Directors under SEBI Act if Public Ltd Company makes declaration
By TIOL News Service
NEW DELHI, SEPT 03, 2015: IT took some time but the CBDT has finally answered most of the queries raised by TIOL TUBE in its special episode on the 'Compliance Window' and many others.
TIOL TUBE had raised the question that if a person acquired an immovable property overseas for USD 50000 out of which part of fund was taken as loan outside India from a bank, and if the FMV of the same is USD 100,000 today, tax is to be paid on what value of the declariton? Answering this question the FAQ states that in such a case while computing the value of the undisclosed asset, deduction in respect of income not chargeable to tax (loan amount) shall be available from the FMV.
In yet another significant clarification the FAQ makes it clear that if a public limited company makes a declaration then Directors of the company will not get immunity against offence punishable under SEBI Act or under IPC.
The Board has also clarified that in case of an e-wallet or virtual card account online which is normally maintained for playing online games, it is similar to a bank account where inward and outward cash movement takes place. A declaration can be made in the manner prescribed for a bank account.
Answering a query whether a valuation report is to be filed along with a Declaration of a foreign asset the FAQ states that it is not necessary but the declarant should keep such a document used for arriving at the value of the asset.
To widen the scope of the declaration, in response to a query that if a person has from time to time transferred funds from his account to the accounts of his spouse or child whether the spouse or the child is also required to make a declaration, the Board has clarified that it is not required if no fund has been deposited in their account in addition to the ones done by the person.
In response to yet another query that if an employee makes a declaration of asset made out of income received from his employer, the employer shall be deemed to be an assessee in default u/s 201(1) for non-deduction of TDS, the CBDT has clarified that once declaration is made by the employee, the employer will escape the rigour of TDS but not the interest element and also the penalty.
Answering one of the questions whether if a partnership firm makes declaration of undisclosed assets, partners will earn the immunity, the Board has clarified that partners shall be eligible for the immunity promised under the Scheme.
Also See : Black Money Compliance window
Black Money, an Overview
Its Raining Black
Black Money Bill