Undisclosed foreign income and assets: The government on Monday informed the Parliament that the Income-tax Department had earlier investigated several undisclosed foreign income and assets after acting on information and then took action under various Acts.
Rs 4,009.64 crore tax slapped
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the income tax department has imposed Rs 4,009.64 crore tax on undisclosed foreign income and assets under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax, 2015 in the nine months of the current fiscal till December 2025, PTI reported.
During the fiscal 2024-25, Rs 4,556.64 crore tax was imposed.
“Whenever, any credible information relating to undisclosed foreign income and assets is received, the same is investigated and appropriate action is taken under the various Acts administered by the Income-tax Department, including the Income-tax Act, 1961 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax, 2015,” the minister said.
He also informed that the total undisclosed foreign income and assets, amounting to Rs 14,636 crore, have been assessed to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax, 2015, for cases identified under Panama, Paradise and Pandora Paper leaks.
“Till December 31, 2025, 1,368 assessments have been completed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, raising tax and penalty demand of over Rs 41,257.08 crore and total 167 prosecution complaints have been filed,” Chaudhary added.
The minister also said there is no official estimation regarding the amount of undisclosed domestic/ foreign income and assets.
New income tax rules from April 1
The Central Board of Direct Taxes (CBDT) has formally notified the Income-tax Rules, 2026. The new framework will come into effect from April 1, 2026, as confirmed through an official gazette notification.
The rules operationalise the Income Tax Bill cleared by Parliament in August last year, replacing the long-standing Income Tax Act, 1961. The intent behind the revamp is not to change tax rates, but to make the law easier to understand by cutting down complexity and outdated provisions.
HRA rules: Same structure, wider city coverage
For salaried individuals, the treatment of House Rent Allowance (HRA) remains largely unchanged. However, the list of cities eligible for higher exemption has been expanded. Now, eight cities — Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru — will qualify for an exemption of up to 50 per cent of salary. In all other cities, the cap continues at 40 per cent.
Shorter law, clearer structure
One of the biggest changes is structural. The new law cuts down the number of sections from 819 to 536 and reduces chapters from 47 to 23. The language has been tightened significantly, bringing down the overall length of the legislation by almost half.
Instead of long, complex explanations, the framework now uses tables and formulas to explain provisions more clearly. Over 150 standardised forms have also been introduced to simplify compliance and documentation.
Tighter checks on capital gains, audits
The rules introduce stricter oversight in areas such as capital gains, stock market transactions and taxation of non-residents. At the same time, some disclosure requirements have been made more straightforward.
Auditors will now have a larger role. They will be responsible for verifying foreign tax credit claims, identifying duplicate PAN entries and assessing tax exposure arising from audit findings.
Clarity has also been provided on how to calculate the holding period for assets. In cases where securities like debentures or bonds are converted into shares, the total holding period will include the time for which the original instrument was held. This is expected to remove ambiguity in determining whether gains are short-term or long-term.
(With inputs from PTI)
