Last date for filing delayed and revised ITR is 31 December.
The Income Tax Department on Sunday issued a warning to taxpayers saying that non-declaration of foreign assets or foreign earned income in their Income Tax Return (ITR) under black money (undisclosed foreign income) of Rs. 10 lakh can be fined. and Assets) and the Imposition of Taxation Act, 2015.
Launched a compliance-cum-awareness campaign
The department on Saturday issued a public advisory as part of its recently launched compliance-cum-awareness campaign to ensure that such information is reported in their ITRs for the assessment year 2024-25.
Definition of Foreign Assets
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 interest in any entity or business, immovable property, custodial accounts, equity and debt interest, trusts. In which a person is a trustee, a beneficiary of a settlor, accounts with singing power, any capital assets held abroad etc.
Mandatory disclosure of foreign assets
The department said that under this measure taxpayers must “compulsorily” 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 assets abroad are “acquired from declared .sources.”
Penalty for non-compliance
“Failure to declare 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 Taxation Act, 2015,” the advisory said.
Outreach efforts by CBDT
The Central Board of Direct Taxes (CBDT), the tax department’s administrative body, said that as part of the campaign, it will send an “informative” SMS and email to resident taxpayers who have filed their ITR for AY 2024-. 25.
Identification by contracts
Communications will be sent to persons “identified” by information obtained under bilateral and multilateral agreements “suggesting” that these persons hold foreign accounts or assets, or have received income from foreign jurisdictions.
Purpose of campaign
The drive is aimed at reminding and guiding people who have not completed fully ascertained foreign assets in their submitted ITR (AY 2024-25), especially in cases involving high value foreign assets, the CBDT said.
Delayed ITR due date
Last date for filing delayed and revised ITR is 31 December.