Black Money Update- 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 new rule has come into effect from October 1, 2024.

The Central Board of Direct Taxes (CBDT) has changed the rules related to the Black Money Act 2015. Under an internal instruction issued on August 18, 2025, it has been decided that now no case will be run under section 49/50 in such minor cases, provided that no penalty has been imposed or is likely to be imposed under section 42/43.

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.

Earlier it used to happen that if someone opened a bank account abroad and the money in it was even 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 filed. 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 no action will be taken against you, 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 the benefit of this. This rule will apply only to those people who have foreign movable assets worth less than Rs 20 lakh after October 1, 2024 and who have not been fined 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.