The Income Tax Department on Sunday warned taxpayers that non-disclosure of assets located abroad or income earned abroad in ITR may attract a fine of Rs 10 lakh under the anti-black money law. The Income Tax Department has recently launched a compliance and awareness campaign. Under which a public advisory was issued on Saturday to ensure that taxpayers enter such information in their Income Tax Return (ITR) for the assessment year 2024-25.

The consultation 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 an entity or business, immovable property, custodial account, equity and debt interests, trusts in which the person is a trustee, beneficiary of the settler, accounts with signature authority, any capital asset held abroad, etc.

This work has to be done.

The department said that taxpayers falling under this criterion will have to 'mandatorily' fill the Foreign Asset (FA) or Income from Foreign Source (FSI) schedule in their ITR even if their income is 'below the taxable limit' or the property abroad is 'acquired from disclosed sources'. According to the consultation, non-disclosure of foreign assets/income in ITR can attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

These suggestions were given.

The Central Board of Direct Taxes (CBDT), the administrative body for the tax department, had said that under the campaign it would 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 received under bilateral and multilateral agreements, suggesting that 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 December 31.