Taxman takes affidavit route to uncover undisclosed foreign assets

The taxman is asking for an affidavit – a declaration under oath – to corner those with hidden foreign bank accounts, properties and other offshore assets.

Till now many bought time and tried to dodge the tax office by denying ownership or links with any overseas assets with false submissions, often made in letterheads of their chartered accountants and lawyers. Later, if tax officials called their bluff, such plain submissions gave them the leeway to escape harsh consequences.

That ploy would no longer work. In an affidavit, containing affirmative statements made on a stamp paper or a notarised declaration, most would refrain from holding back information due to fear of punishment under the criminal law.

The Income Tax (I-T) department, which is inundated with information shared by other countries on foreign assets on Indians, has sensed that insisting on an affidavit would be a quicker way to handle the cases, said persons aware of the development.