No punishment, no fine for keeping black money! Government changed the law for this reason
Black Money: The government has given a big relief to small taxpayers by making a big change in the black money law. Now if someone has a bank account, shares or any other movable property abroad whose total value is less than Rs 20 lakh, and its information is mistakenly not given to the Income Tax Department, then neither will he be fined nor will there be any hassle of court.
This exemption will apply only to movable investments like bank accounts, shares, not immovable properties.
No fine for keeping black money!
The Central Board of Direct Taxes (CBDT) has changed the rules related to the Black Money Act 2015. Under an internal directive issued on 18 August 2025, it has been decided that now in such minor cases, cases will not be run under section 49/50, provided that no penalty has been imposed on them under section 42/43 or is not in a position to be imposed.
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The Income Tax Department says that the purpose of this decision is to provide relief to those who have inadvertently made a mistake, while the real focus will now be on those who hide black money on a large scale. The government hopes that this will improve the tax system and the investigation process will also become more effective.
Even small accounts were fined heavily
Earlier, if someone opened a bank account abroad and the money in it was less than Rs 5 lakh, but if the information was not given to the government, then a fine had to be paid. This fine could reach thousands and lakhs and a case could also be made. Now this has been changed. Now if you have any property abroad whose total value is less than Rs 20 lakh like money deposited in the bank, shares, bonds or any other investment, then you can pay a fine. No action will be taken even if you have not given its information to the Income Tax Department.
Not everyone will get this relief
This exemption of the government is not for everyone. Those against whom a case is already going on before October 1, 2024, will not get its benefit. This rule will apply only to those people who have foreign movable assets worth less than Rs 20 lakh after October 1, 2024 and on whom no penalty has been imposed yet. One more thing has been made clear, this exemption is only on movable assets. Meaning, investments like bank account, shares, mutual funds. If someone has bought a house or land abroad, then he will not get the benefit of this rule.
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Why was this change made?
The Income Tax Department believes that running a case for every small mistake is a waste of time and resources. Many people knowingly or unknowingly do not give information about such properties, but their intention is not wrong. Now the department wants to focus on big and deliberate cases, where properties worth crores are hidden. This change has been made through an internal order which was issued on 18 August 2025. This circular has not been made public yet, but its information has come from reliable sources.
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