Income Tax Department warned the taxpayers
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The Income Tax Department on Sunday warned taxpayers that if they do not disclose assets held abroad or income earned abroad in their income tax returns, they may face a fine of up to Rs 10 lakh.
Income Tax Department warned
The Income Tax Department gave this information on Saturday as part of the recently launched compliance-cum-awareness campaign. The department warned taxpayers that they must provide this information in their income tax returns for the assessment year 2024-25. The department said that Indian taxpayers are required to report any capital assets such as foreign bank accounts, cash value insurance contracts or annuity contracts, financial partnerships in any entity or business, immovable property, custodial accounts, equity and debt interest, etc. .
The Income Tax Department said taxpayers will have to 'mandatorily' fill the Foreign Assets (FA) or Foreign Source Income (FSI) schedule in their ITR, even if their income is 'less than the taxable limit'. “Non-disclosure of foreign assets/income in ITR may attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015,” the advisory said.
Messages will be sent to people who have filed income tax returns
The Central Board of Direct Taxes (CBDT), the administrative body of the tax department, had said that under the campaign, messages and emails will be sent to taxpayers who have already filed their ITR for 2024-25. This communication will be sent to individuals who have been 'identified' through information received under bilateral and multilateral agreements as likely to have assets or foreign income abroad. CBDT said that the objective of this campaign is to remind those who have not given details of foreign assets in their submitted ITR (AY 2024-25). The last date for filing ITR is December 31.
