Income Tax Department The ITR on Sunday warned taxpayers that non-disclosure of assets located abroad or income earned abroad could attract a fine of Rs 10 lakh under the anti-black money law. The department on Saturday issued a public notice as part of its recently launched compliance and awareness drive to ensure that taxpayers submit such information in their income tax returns (ITR) for the assessment year 2024-25.
What are foreign assets?
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, real estate, custodial accounts, equity and debt interests, trusts in those for which the person is a trustee, Beneficiaries of the trustor, accounts with power of signature, any capital assets held abroad, etc. The department said taxpayers subject to 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 the property is “. acquired abroad from “disclosed sources”.
A fine of Rs 10 lakh may be imposed.
According to the notice, “Non-disclosure of foreign assets/income in ITR may attract a fine of Rs 10 lakh under the Black Money (Undisclosed Income and Foreign Assets) and Imposition of Taxes Act, 2015.” 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 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 under bilateral and multilateral agreements that “suggests” that 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.
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