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 advisory has been issued on Saturday, to ensure that taxpayers enter such information in their Income Tax Return (ITR) for the assessment year 2024-25.
The advisory 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 interest in any entity or business, immovable property, custodial account, equity and debt interests, trusts, etc. Which includes the person who is the trustee, beneficiary 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 below the taxable limit or The property must have been acquired abroad from 'disclosed sources'. As per 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 these individuals may hold foreign accounts or assets, or have received income from foreign jurisdictions . The last date for filing late and revised ITR is 31 December.
