The Income Tax Department on Sunday warned taxpayers that non-disclosure of assets located abroad or income earned abroad in ITR can attract a fine of Rs 10 lakh under the anti-black money law. The Income Tax Department has recently started a compliance and awareness campaign. Under which a public advisory has been issued on Saturday to ensure that taxpayers enter such information in their Income Tax Return (ITR) for the assessment year 2024-25. It has been clarified in the advisory that in the last year India Foreign assets for a tax resident of U.S. include bank accounts, cash value insurance contracts or annuity contracts, financial interests in an entity or business, real estate, custodial accounts, equity and debt interests, trusts in which the individual is trustee, Beneficiaries of the settlor, accounts with signing authority, any capital asset held abroad etc.
The department said that taxpayers falling under this criteria will have to 'mandatorily' fill the Foreign Asset (FA) or Foreign Source Income (FSI) schedule in their ITR, even if their income is below the taxable limit. Or the property has been acquired abroad from 'disclosed sources'. As per the advisory, 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 suggestions came after the Central Board of Direct Taxes (CBDT), the administrative body for the tax department, had said that as part of the campaign it would send 'informative' SMS and emails to resident taxpayers who have already filed their ITR for assessment year 2024-25. Is done.
This communication will be sent to individuals who have been identified through information obtained under bilateral and multilateral agreements that suggest these individuals may hold foreign accounts or assets, or have received income from foreign jurisdictions . The last date for filing late and revised ITR is 31 December.
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