Now a fine of Rs 10 lakh will be imposed on non-disclosure of foreign assets, income, will have to be disclosed in ITR.

New Delhi: The Income Tax Department today warned all taxpayers that non-disclosure of assets located abroad or income earned abroad in the ITR may attract a fine of Rs 10 lakh under the anti-black money law. The department issued a public advisory last Saturday as part of its recently launched compliance-cum-awareness campaign to ensure that taxpayers enter such information in their income tax returns (ITRs) for assessment year 2024-25. Do it.

This advisory clearly states that, foreign assets for a tax resident of India in the previous year include bank accounts, cash value insurance contracts or annuity contracts, financial interest in any entity or business, immovable property, custodial account, equity and Loan interests, trusts in which the person is a trustee, beneficiaries of the settlor, accounts with signing authority, any capital assets held abroad etc.

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In this regard, the Income Tax Department said that, taxpayers falling under this norm will have to “mandatorily” fill the Foreign Asset (FA) or Foreign Source Income (FSI) schedule in their ITR, even if their income is “less than the taxable limit”. or the property is acquired abroad from “disclosed sources.”

According to this advisory, “Taxpayer not disclosing 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.”

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Along with this, the Central Board of Direct Taxes (CBDT), the administrative body for the tax department, had said that as part of the campaign it will send “informative” SMS and emails to those 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' that these individuals may hold foreign accounts or assets, or have income from foreign jurisdictions. Have received. Please note that the last date for filing late and revised ITR is 31st December.
(with agency input)