Sections 79-83 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 79 to 83 are five short housekeeping provisions in Chapter VII. They round off amounts, say which court may try an offence, protect proceedings from technical defects, bar civil suits against orders under the Act, and let information collected under the Income-tax Act be used for this Act. A person facing a complaint or an order under the Act can take advice from our legal consultation team.
As per the Act as enacted and published in the Gazette of India on 27 May 2015: undisclosed foreign income and asset is rounded off to the nearest one hundred rupees and amounts payable or receivable to the nearest ten rupees (section 79). No court inferior to a metropolitan magistrate or a magistrate of the First Class may try an offence (section 80). Proceedings are not invalid merely for a mistake, defect or omission if they conform in substance and effect to the Act (section 81). No civil suit lies to set aside or modify a proceeding or order under the Act (section 82). Information under the Income-tax Act may be used for this Act (section 83).
Section 79: rounding off
The marginal note reads "Rounding off of income, value of asset and tax".
- Sub-section (1). The amount of undisclosed foreign income and asset computed in accordance with the Act shall be rounded off to the nearest multiple of one hundred rupees.
- Sub-section (2). Any amount payable or receivable by the assessee under the Act shall be rounded off to the nearest multiple of ten rupees.
- Sub-section (3). The method of rounding off under sub-section (1) or (2) shall be such as may be prescribed.
Rule 12 of the Rules as notified on 2 July 2015 supplies the method: the amounts are rounded to the nearest multiple of one hundred rupees or ten rupees, as the case may be, and where an amount contains a part of a rupee consisting of paise, a part of fifty paise or more is increased to one rupee and a part of less than fifty paise is ignored. See our article on Rules 9 to 12 and Forms 6 and 7. Later amendment rules should be checked.
An example shows how the two levels work. Suppose the undisclosed foreign income and asset is computed at 24,86,349 rupees. Under sub-section (1) it is rounded to the nearest multiple of one hundred rupees, which is 24,86,300. If the tax payable on it works out to 7,45,890 rupees and fifty paise, the amount payable is rounded under sub-section (2) to the nearest ten rupees and the paise rule in rule 12 applies. The figures are invented and are not a statement about any real assessment. For the computation itself, see our article on section 5.
Section 80: trial of offences
The marginal note in the Gazette is printed "Congnizance of offences" (a misspelling, quoted as printed). The section says: "No court inferior to that of a metropolitan magistrate or a magistrate of the First Class shall try any offence under this Act."
The section is about the trial of an offence. Despite the marginal note's word "cognizance", the operative text speaks of which court may try, and it fixes a floor: no court below a metropolitan magistrate or a magistrate of the First Class. The Act as enacted does not name any special court and says nothing in this section about where a complaint is filed. The offences are in Chapter V; see our article on sections 48 and 49.
Section 81: assessment not invalid on certain grounds
No assessment, notice, summons or other proceedings, made or issued or taken or purported to have been made or issued or taken in pursuance of any provision of the Act, shall be invalid or deemed invalid merely by reason of any mistake, defect or omission in it, if it is in substance and effect in conformity with or according to the intent and purpose of the Act.
Two features: the protection is for "mistake, defect or omission", and it depends on conformity "in substance and effect". It is not a blanket cure. The Act as enacted does not say what counts as substance, and this article gives no example from decided cases. The related provision on notices deemed valid when a person took part in the proceeding is in section 76; see our article on sections 74 to 76.
Section 82: bar of suits in civil courts
- Sub-section (1). No suit shall be brought in any civil court to set aside or modify any proceeding taken or order made under the Act.
- Sub-section (2). No prosecution, suit or other proceeding shall lie against the Government or any officer of the Government, for anything done in good faith or intended to be done under the Act.
The remedy against an order is therefore in the Act itself: the appeals and revision in Chapter III. See our article on sections 15 to 17 for the first appeal. Sub-section (2) protects an officer for what is done "in good faith"; the Act as enacted does not define good faith here.
Section 83: income-tax papers available for this Act
The marginal note reads "Income-tax papers to be available for purposes of this Act". Notwithstanding anything contained in the Income-tax Act, all information contained in any statement or return made or furnished under the provisions of that Act, or obtained or collected for the purposes of that Act, may be used for the purposes of this Act.
So a return filed under the income-tax law, and information collected under it, can be used in an assessment under this Act. This is why consistency between an income-tax return and the foreign-asset facts matters; see our guide on foreign asset reporting in the return for the income-tax side. The reference to the Income-tax Act is to the Income-tax Act, 1961 as printed in 2015; the corresponding provision of the current income-tax law should be checked.
The five sections at a glance
| Section | Subject | What it provides (as enacted) |
|---|---|---|
| 79 | Rounding off | Undisclosed foreign income and asset to nearest one hundred rupees; amounts payable or receivable to nearest ten rupees; method as prescribed |
| 80 | Trial of offences | No court inferior to a metropolitan magistrate or a magistrate of the First Class |
| 81 | Validity | No invalidity merely for mistake, defect or omission, if in substance and effect in conformity with the Act |
| 82 | Bar of suits | No civil suit to set aside or modify a proceeding or order; protection for good-faith acts of Government and officers |
| 83 | Income-tax papers | Information under the Income-tax Act may be used for this Act |
A worked example
Jagdish Sethi is assessed under the Act and believes the assessment order has a defect: one paragraph cites the wrong date. Under section 81, the order is not invalid merely for that mistake if it is in substance and effect in conformity with the Act. He cannot file a civil suit to set the order aside, under section 82(1); his route is through the appeals in the Act. He is later prosecuted for an offence under section 50, and the complaint is tried by a metropolitan magistrate, which section 80 allows; a court below that rank could not try it. In the assessment, the Assessing Officer used information from Jagdish's income-tax return, which section 83 permits.
Points the text leaves open
The Act as enacted does not say whether section 80 prevents a Sessions Court from trying an offence; it states the lower limit only. It does not say how rounding under section 79(1) interacts with a tax computed on a rounded amount, beyond what rule 12 provides. It does not limit the purposes for which section 83 information may be used within "the purposes of this Act". This article does not answer those questions.
References and what to check
The sections are read as enacted. Later Finance Act amendments to sections 79 to 83, and any amendment rules on rounding off, 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 with an order or a complaint?
If you have an assessment order or a complaint under this Act and want to understand what these general provisions mean for you, our legal consultation team can review the papers with you.
Key takeaways
- Undisclosed foreign income and asset is rounded to the nearest one hundred rupees, and amounts payable or receivable to the nearest ten rupees.
- No court inferior to a metropolitan magistrate or a magistrate of the First Class may try an offence.
- A proceeding is not invalid merely for a mistake, defect or omission if it conforms in substance and effect to the Act.
- No civil suit lies against a proceeding or order under the Act, and good-faith acts of Government and officers are protected.
- Information under the Income-tax Act may be used for this Act.
- Check later Finance Act amendments before acting.
Read next
- Sections 74 to 76: service and authentication of notices
- Sections 77 and 78: appearance by approved valuer and authorised representative
- Sections 84 and 85: applied income-tax provisions and rule-making power
- Foreign asset reporting in ITR (Schedule FA)
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.