2 weeks Ago By Pawan Kumar
New Delhi: The Income-Tax (I-T) department has launched a new campaign to remind taxpayers about the importance of disclosing foreign-held assets or income earned abroad in their Income Tax Returns (ITR). The campaign, launched on November 17, aims to raise awareness and ensure compliance under the Anti-Black Money Law. According to the I-T department, taxpayers who fail to report such assets or income could face a hefty penalty of Rs 10 lakh.
The campaign focuses on the assessment year (AY) 2024-25, and all eligible taxpayers are required to fill the foreign asset (FA) or foreign source income (FSI) schedule in their ITR. This rule applies even if the income is below the taxable limit or the foreign asset was acquired using disclosed funds. What Are Foreign Assets?As per the I-T department’s advisory, foreign assets include: - Bank accounts or custodial accounts held abroad - Financial interests in entities or businesses outside India - Immovable properties, trusts, or any capital assets located overseas - Equity and debt investments - Accounts where the taxpayer holds signing authority - Cash value insurance or annuity contracts - Penalty and Compliance Measures What I-T Department Said?The I-T department has clarified that failing to disclose foreign assets or income in the ITR can lead to penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The penalty could go up to Rs 10 lakh. What Did CBDT Said?The Central Board of Direct Taxes (CBDT), which administers the I-T department, has stated that informational messages and emails will be sent to taxpayers who have already filed their ITR for AY 2024-25. These communications are targeted at individuals identified through bilateral and multilateral agreements, suggesting they may own foreign assets or have received income from abroad.
In a statement, the CBDT explained, “This campaign serves as a reminder and guidance for taxpayers who may not have completed the foreign asset schedule in their ITR, especially in cases involving significant foreign holdings.” Deadline To Rectify ErrorsTaxpayers have until December 31, 2024, to file a revised or belated ITR if they need to correct any discrepancies. The campaign seeks to ensure compliance and prevent unintentional lapses in reporting foreign assets or income.
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