MUMBAI: Black money rules have flummoxed many who were looking for a chance to get tax sleuths and enforcement officials off their back. The law is complex, imposes tax on money that has been spent and sparks new fears — not the kind of deal that people with Swiss bank accounts and offshore properties were fishing for. Even those who became NRI to avoid the provisions of law would find it difficult to wriggle out of the tax net.Senior tax professionals ET spoke to said they would be surprised if too many fall for the special window to declare overseas assets. Here’s why::“It’s impossible for a resident to have details of each and every deposit made in a bank account since the account was opened.… Foreign banks are not co-operating in giving bank statements beyond 5 years,” said senior chartered accountant Dilip Lakhani. As per the provisions of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 and Rules, individuals who want to buy peace by paying 60 per cent of the amount as tax and penalty have to disclose the date of opening the bank account, country of location, account number and every deposit made from the date of opening the account till the valuation date.Properties acquired abroad will be taxed on the basis of a valuation report of a valuer who is recognised by the government of that country. “So, what is the evidence the resident Indian will have to produce to prove that the valuer is recognised by that particular foreign government?,” said Lakhani.Even if the taxman agrees on a valuation, how will the gains be taxed if the asset is sold three years later? Consider this: someone had purchased an apartment in Dubai for Rs. 10 crore and now pays 60 per cent tax on the market value of Rs. 20 crore. When he sells it a few years later for Rs. 50 crore, he would be taxed on a capital gain of Rs. 40 crore (Rs. 50 crore minus Rs. 10 crore) even though he has paid tax on Rs. 20 crore under the new scheme. Tax practioners think the value which is offered under the scheme should be allowed as a cost of acquisition.Under Income Tax Act the tax department can go back up to 16 years whereas under the Black Money law (which prescribes no time limit) the resident is expected to disclose assets for a period beyond 16 years also. This could be 20, 30 or even 40 years depending on when an account was opened. Some of the accountholders in the Liechtenstein bank LGT had opened accounts in the late 1960s and 1970s. “Foreign banks don’t have account details beyond 10 years…If you can’t give all details, how will you comply? The tax department will reject the application,” said TP Ostwal, another senior chartered accountant.Calculating the fair value of unlisted shares will be a pain. How will one satisfy the tax authority that the disclosure is correct? “A individual who holds shares in an unlisted firm will have to find out the fair value of all assets that firm holds. It can be time-consuming,” said Lakhani.According to Daksha Baxi, tax partner at law firm Khaitan & Co, it will not be easy to complete the valuation exercise in three months, but the downside of not declaring could be severe in view of the automatic exchange of information becoming effective soon. “If the information comes to the notice of the tax department post this window, the payout would be much more and there would be the risk of imprisonment and prosecution,” said Baxi. It’s a scary thought in a Catch-22 situation.If anyone, even by mistake, makes an incorrect declaration, then the entire declaration will be treated as null and void. The tax and penalty paid will not be refunded and the information given in the form will be used against the person for initiating proceedings.Under the Income Tax Act 1961. Also, after filling up the form to spell out overseas bank accounts and assets, the taxman may tell the person that the government already knows about the undisclosed assets. So, if the state has information about someone’s bank account but not about the properties, the form has to be revised to avoid action under the Anti-Money Laundering Law.