The government has changed some rules related to black money.
The government has given big relief to small taxpayers by making major changes in the black money law. Now if someone has a bank account, share or any other movable property abroad, which is less than Rs 20 lakh, and its information is not mistaken to the Income Tax Department, then neither will it be fined nor the court-court. This new rule has come into force from 1 October 2024.
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 in such minor cases a case will not be run under section 49/50, provided that no fine is imposed under section 42/43 or is not in a position to be imposed.
The Income Tax Department says that the purpose of this decision is to give relief to those who have unknowingly lapse, while the real meditation 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.
Earlier, small accounts were also imposed on small accounts
Earlier it used to be that if someone opened a bank account abroad and even though the money was less than 5 lakhs in it, if the information was not given to the government, then the penalty had to be paid. This fine could reach thousands of millions and a case could also be made. Now it has been changed. Now if you have any property abroad, which is less than Rs 20 lakhs like money, shares, bonds or any other investment in the bank, then you will not have action, even if you have not given this information to the Income Tax Department.
Everyone will not get this relief
This exemption of the government is not for everyone. Those against whom the case is already going on before 1 October 2024, they will not get the benefit. This rule will apply only to those who have foreign movable assets of less than Rs 20 lakh after 1 October 2024 and no fine has been imposed so far. One more thing has been cleared, this exemption is only on movable properties. Meaning, investment 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.
Why was this change done?
The Income Tax Department believes that running a case for every small mistake is a waste of time and resources. Many people are unknowingly not able to give information about such properties, but their intention is not wrong. Now the department wants to focus on big and intentional matters, where crores of assets are hidden. This change has been made through an internal order which was released on 18 August 2025. This circular has not been made public at the moment, but its information has come out from some reliable sources.