Income Tax Advisory on ITR: If such a mistake is made, a fine of Rs 10 lakh can be imposed.

Income Tax Department has issued an advisory and
The Income Tax Department has warned taxpayers that non-disclosure of assets located abroad or income received abroad can attract a fine of up to Rs 10 lakh under the Anti-Black Money Act. The department issued a public advisory under the recently launched Come Compliance awareness campaign to ensure that taxpayers furnish such information in their income tax returns for the assessment year 2024-25.

Such taxpayers must mandatorily fill the Foreign Assets or Foreign Source Income Schedule in their ITR.
The advisory clarifies that foreign assets for a tax resident of India in the previous year include bank accounts, cash value insurance contracts or annuity contracts, financial assets held in any entity. Business, immovable property, custodial accounts, equity and loan interest, trust in which a person is a trustee, beneficiary of the settlor, accounts with signing authority, capital assets held abroad have to be disclosed in the ITR.

The department has said that taxpayers falling under this criteria will mandatorily fill the Foreign Assets (FA) or Foreign Source Income (FSI) schedule in their ITR. Even if their income is less than the taxable income.

According to the advisory, under the Black Money and Imposition of Tax Act, 2015, a fine of up to Rs 10 lakh can be imposed for non-disclosure of foreign assets or income in ITR.