Sections 60-63 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 60 to 63 set out what it cost to use the one-time compliance window of Chapter VI, how the declaration was made and signed, and by when the payment had to be made. On the face of the sources, the window is closed; this article is a record of what the Chapter provided and does not suggest that a declaration can be made now.
As per the Act as enacted and published in the Gazette of India on 27 May 2015, an undisclosed foreign asset declared under section 59 within the time specified was chargeable to tax at thirty per cent. of its value on the date of commencement of the Act (section 60), and the declarant was liable to a penalty of one hundred per cent. of that tax (section 61). The declaration went to the Principal Commissioner or the Commissioner in the prescribed form (section 62). Tax and penalty had to be paid by a date to be notified, failing which the declaration was deemed never to have been made (section 63).
Section 60: tax at thirty per cent.
The marginal note is "Charge of tax". Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the undisclosed asset located outside India and declared under section 59 within the time specified there "shall be chargeable to tax at the rate of thirty per cent. of value of such undisclosed asset on the date of commencement of this Act".
Two points. First, the charge was on value of the asset, not on income. Second, the value was taken on the date of commencement of the Act. The sources do not reconcile that date: section 1(3) prints 1 April 2016, while the Rules as notified on 2 July 2015 fix the 1st day of July, 2015 as the date for determining the value of an asset declared under section 59 (rule 3, Explanation 2). The instrument that links them is not in the sources consulted, and this article gives no other date. How market value was worked out is in our articles on rule 3 on bullion, art, property and bank accounts and on rule 3 on shares, securities and interest in a firm.
Section 61: penalty at one hundred per cent. of the tax
The marginal note is "Penalty". Notwithstanding anything in the Income-tax Act or any Finance Act, the person making a declaration was, in addition to the tax charged under section 60, "liable to penalty at the rate of one hundred per cent. of such tax". So a declarant paid the tax and an equal sum as penalty. For a declaration of an asset valued at one crore rupees on the relevant date, for example, the tax at thirty per cent. would have been thirty lakh rupees and the penalty a further thirty lakh rupees, making sixty lakh rupees in all; this is arithmetic on the printed rates and not a statement about any real case.
Anyone reading this Chapter to understand an old foreign asset can take advice from our legal consultation team. If you want the background to the main charge in the Act, see our article on section 3.
Section 62: manner of declaration
Sub-section (1). A declaration under section 59 was to be made to the Principal Commissioner or the Commissioner, and was to be in such form and verified in such manner as might be prescribed. The prescribed form is Form 6 of the Rules, covered in our article on Rules 9 to 12 and Forms 6 and 7.
Sub-section (2): who signed.
| Declarant | Signed by (as enacted) |
|---|---|
| Individual | The individual himself; if absent from India, the individual or some person duly authorised by him; if mentally incapacitated from attending to his affairs, his guardian or another person competent to act on his behalf |
| Hindu undivided family | The karta; if the karta is absent from India or mentally incapacitated, any other adult member of the family |
| Company | The managing director; if for any unavoidable reason he cannot sign, or there is none, any director |
| Firm | The managing partner; if for any unavoidable reason he cannot sign, or there is none, any partner, not being a minor |
| Any other association | Any member of the association or the principal officer |
| Any other person | That person or some other person competent to act on his behalf |
Sub-section (3): one declaration only. A person who had made a declaration under sub-section (1) in respect of his asset, or as a representative assessee in respect of the asset of any other person, was not entitled to make any other declaration under that sub-section in respect of his asset or the asset of such other person, and any such other declaration, if made, was deemed to be void. The sub-section also covers a declaration made as a representative assessee in respect of the asset of another person.
Section 63: time for payment of tax
The marginal note is "Time for payment of tax".
- Sub-section (1). The tax payable under section 60 and the penalty payable under section 61 were to be paid on or before a date to be notified by the Central Government in the Official Gazette.
- Sub-section (2). The declarant was to file the proof of payment of tax and penalty, on or before the date notified under sub-section (1), with the Principal Commissioner or the Commissioner before whom the declaration under section 59 was made.
- Sub-section (3). If the declarant failed to pay the tax in respect of the declaration on or before the date notified under sub-section (1), the declaration filed by him was deemed never to have been made under the Chapter.
A drafting point to note: sub-section (3) speaks of failure to pay "the tax", while sub-section (1) and the other sections speak of tax and penalty together. The text is read as printed, and this article does not say how the two are to be reconciled. Section 72(b) says what followed where no tax and penalty was paid, and it is explained in our article on sections 71 and 72.
The four sections in sequence
| Step | Section | What the Act provided (as enacted) |
|---|---|---|
| 1 | 59 | Declaration of an undisclosed foreign asset in the window |
| 2 | 60 | Tax at thirty per cent. of value on the date of commencement |
| 3 | 61 | Penalty at one hundred per cent. of that tax, in addition |
| 4 | 62 | Declaration to the Principal Commissioner or Commissioner, in the prescribed form, signed as listed |
| 5 | 63 | Payment by the notified date, proof of payment filed, failing which the declaration is void |
A worked example (in the past tense)
Hemant Joshi, a resident, declared a foreign property under section 59 within the window. The tax on its value on the relevant date was worked out at thirty per cent. and the penalty at one hundred per cent. of that tax. He signed the declaration himself, as an individual, and made it to the Commissioner in the prescribed form. He paid the tax and the penalty by the date notified under section 63(1) and filed proof of payment with the Commissioner before whom the declaration had been made. Had he failed to pay the tax by that date, section 63(3) would have treated the declaration as never made, and section 72(b) would then have made the value of the asset chargeable to tax under the Act in the previous year in which the declaration was made.
For the effect of a completed declaration, see our article on sections 64 to 68.
References and what to check
The sections are read as enacted and as a record of what the Chapter provided. No notified date under section 59 or 63 is given, because none is in the sources. Later Finance Act amendments should be checked. References to the Income-tax Act are to the Income-tax Act, 1961 as printed in 2015; the corresponding provision of the current income-tax law should be checked.
Need help reading the history of an old foreign asset?
Where the status of an overseas asset from earlier years is unclear, our legal consultation team can set out what Chapter VI provided and how the later parts of the Act apply to your facts.
Key takeaways
- Section 60 charged tax at thirty per cent. of the value of the declared asset on the date of commencement.
- Section 61 added a penalty of one hundred per cent. of that tax.
- Section 62 required a declaration to the Principal Commissioner or Commissioner in the prescribed form, signed by the persons listed, and barred a second declaration.
- Section 63 required payment and proof of payment by a notified date, failing which the declaration was deemed never made.
- The window is closed on the face of the sources.
- Check later Finance Act amendments before acting.
Read next
- Section 59: declaration of undisclosed foreign asset
- Sections 64 to 68: effect of declaration and void declarations
- Sections 71 and 72: persons excluded from declaration and removal of doubts
- Black Money Act: undisclosed foreign income
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.