Published 10:39 IST, November 17th 2024
Foreign Asset Disclosure: Here’s How You Can Be Fined Rs 10 Lakh by I-T Department
The advisory, issued as part of a compliance campaign launched on Saturday, aims to ensure taxpayers correctly disclose such information in their ITR.
Foreign Asset Disclosure: The Income Tax (I-T) Department has warned taxpayers that failing to report foreign assets or income in their Income Tax Returns (ITR) could lead to a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The advisory, issued as part of a compliance campaign launched on Saturday, aims to ensure taxpayers correctly disclose such information in their ITR for the assessment year (AY) 2024-25.
Range of Holdings
The department clarified that foreign assets for Indian tax residents include a broad range of holdings, such as:
- Bank accounts
- Cash value insurance or annuity contracts
- Financial interests in entities or businesses
- Immovable property
- Custodial accounts
- Equity and debt interests
- Trusts (where the individual is a trustee, beneficiary, or settlor)
- Accounts with signing authority
- Other capital assets held abroad
It underlined that the foreign asset (FA) or foreign source income (FSI) schedules in the ITR must be filled even if the taxpayer's total income is below the taxable limit or the foreign assets were acquired through disclosed sources.
"Non-disclosure of foreign assets or income in the ITR can result in a Rs 10 lakh penalty under the anti-black money law," the advisory stated.
Will Send Informational Messages: CBDT
The Central Board of Direct Taxes (CBDT), which oversees the I-T Department, stated it will send informational messages and emails to taxpayers who have filed their ITRs for AY 2024-25 but may have omitted information about foreign income or assets. These individuals are identified using data obtained under bilateral and multilateral agreements, which suggest ownership of foreign accounts or receipt of income from overseas sources.
The campaign seeks to remind and guide taxpayers, especially those with high-value foreign assets, to complete the FA and FSI schedules in their ITR. The last date for filing revised or belated ITRs is December 31.
(With PTI inputs)
Updated 13:51 IST, November 19th 2024