Section 3(3) in The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015
(3)Where a new asset has been acquired or made out of consideration received on account of transfer of an old asset or withdrawal from a bank account, then the fair market value of the old asset or the bank account, as the case may be, determined in accordance with sub-rule (1) and sub-rule (2) shall be reduced by the amount of the consideration invested in the new asset.IllustrationA house property (H1) located outside India was bought in 1997 for twenty lakh rupees. It was sold in 2001 for twenty five lakh rupees which were deposited in a foreign bank account (BA). In 2002 another house property (H2) was bought for thirty lakh rupees. The investment in H2 was made through withdrawal from BA. H2 has not been transferred before the valuation date and its value on the valuation date is fifty lakh rupees. Assuming that the value of BA as computed under Rule 3(1)(e) is seventy lakh rupees, the fair market value (FMV) of the assets shall be as below:FMV of H1: (Higher of Rs. 20 lakh and 25 lakh) - Rs. 25 lakh (invested in BA) = NilFMV of BA: Rs. 70 lakh - Rs. 30 lakh (invested in H2) = Rs. 40 lakhFMV of H2: (Higher of Rs. 30 lakh and 50 lakh) = Rs. 50 lakh
