Black Money Act 2.0: Government Plans Major Law Overhaul Soon

The Government of India has begun a comprehensive review of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 — widely known as the Black Money Act (BMA). This move aims to update the decade-old law, close enforcement loopholes, and align it with the Income Tax Act, 1961, paving the way for a stronger and more effective “Black Money Act 2.0.”

Why the Government Is Reviewing the Act

Introduced in 2015, the Black Money Act was one of the Modi government’s flagship efforts to crack down on hidden foreign assets and tax evasion. However, over time, several gaps in its implementation and overlaps with existing tax laws have surfaced.

To address these challenges, the Central Board of Direct Taxes (CBDT) has formed two expert panels — one led by Amal Pusp, Principal Chief Commissioner of Income Tax (UP-East), and another by Jayaram Raipura, Chief Commissioner of Income Tax. These committees will study how the Act has worked so far and suggest practical improvements.

What Changes May Come in “Black Money Act 2.0”

The review aims to simplify the law, improve enforcement, and ensure consistency with the Income Tax Act. Some expected reforms include:

• Better coordination between Indian and foreign tax authorities.

• Easier reporting and assessment procedures.

• Stronger penalties for willful offenders.

• Use of data and technology to track hidden foreign wealth.

Background of the Black Money Act, 2015

The original law was designed to detect undisclosed foreign income and assets, impose a 30% tax along with heavy penalties, and prosecute those hiding wealth abroad. While it was a landmark move, practical hurdles and limited data-sharing made enforcement difficult.

Conclusion

The government’s decision to revisit and modernize the Black Money Act reflects its ongoing commitment to financial transparency and tax fairness. The upcoming Black Money Act 2.0 could strengthen India’s legal arsenal against black money, making it tougher for offenders to hide illegal assets abroad while ensuring smoother compliance for honest taxpayers.