income tax
The Income Tax Department on Sunday warned taxpayers that non-disclosure of assets located abroad or income earned abroad in ITR could attract a penalty of Rs 10 lakh under the anti-black money law. The department on Saturday issued a public advisory as part of its recently launched compliance-cum-awareness campaign to ensure that taxpayers file such information in their income tax returns (ITR) for assessment year 2024-25. .
What are foreign assets?
It clarifies that foreign assets for a resident of India include bank accounts, cash value insurance contracts or annuity contracts, financial interests in any entity or business, immovable property, custodial accounts, equity and debt interests, trusts in which the person is a trustee, Beneficiaries of the settlor, accounts with signing authority, any capital asset held abroad etc. The department said 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.”
A fine of Rs 10 lakh may be imposed
According to 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 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 resident taxpayers who have already filed their ITR for assessment year 2024-25 . 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. The last date for filing late and revised ITR is December 31.
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