Do these important things while filing ITR, Income Tax Department gives advice to taxpayers

New Delhi: The Central Board of Direct Taxes (CBDT) has advised all taxpayers to carefully review their foreign income and assets and report them clearly in their income tax returns (ITR). The Income Tax Department in its special edition of 'Samvaad' raised awareness about proper disclosure of foreign assets and income by tax payers. The objective of this program was to increase awareness among taxpayers about the need to give accurate information about their foreign income and assets in their Income Tax Returns (ITR).

During the session, CBDT Commissioner (Investigation) Shashi Bhushan Shukla informed that all Indian residents need to declare their foreign assets, which could include real estate, bank accounts, shares, debentures, insurance policies, or any other financial assets. Whom are you making fun of? He said the Income Tax Department has provided a detailed step-by-step guide to the ITR form. Specifically in the Foreign Assets and Income Schedule where taxpayers can report their foreign income and assets.

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Who will have to give information in ITR?

The CBTT Commissioner (Investigation) further emphasized that this rule applies exclusively to resident taxpayers, as defined under section 6 of the Income Tax Act. Defining resident taxpayers, Shukla clarified that a resident taxpayer is one who has stayed in India for at least 182 days during the previous year or who has stayed in India for 365 days during the previous four years. Taxpayers who do not meet these criteria are either considered non-resident or not ordinarily resident and are not required to declare foreign income and assets.

Shashi Bhushan Shukla said that only resident taxpayers will have to report their foreign income and assets in their ITR. The discussion turned to the common misconception about taxpayers who own foreign assets but earn no income from them. Shukla pointed out that even if a resident taxpayer has foreign assets, such as a property purchased years ago, which does not generate income, they should still declare it in their ITR, regardless of the absence of rental income or interest. Will have to do.

Foreign assets will have to be disclosed

He gave the example of a person who bought property abroad in 2010 but is not earning any income from it. Even in this case as long as the person is resident, they are bound to declare this asset. Answering about the situation where a taxpayer holds foreign assets, such as investment property or a bank account abroad, but the income generated from these assets is below the taxable limit, Shukla confirmed that every resident taxpayer holding foreign assets. Will have to report it, no matter what.