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The Income Tax Department on Sunday warned taxpayers that non-disclosure of assets located abroad or income earned abroad in ITR can attract a fine of Rs 10 lakh under the anti-black money law. The Income Tax Department has recently started a compliance and awareness campaign. Under which a public notice was issued on Saturday, to ensure that taxpayers enter such information in their Income Tax Return (ITR) for the assessment year 2024-25.
The notice clarifies that foreign assets held by a tax resident of India in the previous year include bank accounts, cash value insurance contracts or annuity contracts, financial interests in any entity or business, real estate, custodial accounts, capital and debt interests, trusts, etc. Which includes the person who is the trustee, the trustor’s beneficiary, accounts with signing authority, any capital assets held abroad, etc.
This work will have to be done
The department said taxpayers who fall under this rule will have to ‘compulsorily fill’ the list of foreign assets (FA) or foreign source income (FSI) in their ITR, even if their income is below the taxable limit or property It must have been acquired abroad. from ‘disclosed sources’. According to the notice, non-disclosure of foreign assets/income in ITR can attract a fine of Rs 10 lakh under the Imposition of Taxes and Black Money (Undisclosed Foreign Income and Assets) Act, 2015.
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These suggestions were given
The Central Board of Direct Taxes (CBDT), the administrative body of the tax department, had said that as part of the campaign it will send ‘informative’ SMS and emails to the resident taxpayers who have already filed their ITR for the assessment year 2024-25. . . This communication will be sent to individuals who have been identified through information obtained pursuant to bilateral and multilateral agreements that suggest these individuals may have foreign accounts or assets, or have received income from foreign jurisdictions. The last date for late and revised ITR submission is December 31.
