Key Points
- The Income Tax Department has issued a warning about penalties for not disclosing foreign assets or income in the ITR.
- A fine of Rs 10 lakh can be imposed under the Black Money Act for non-disclosure.
- The deadline for filing belated and revised ITRs is December 31.
- Taxpayers are reminded to report foreign assets, including bank accounts, property, and income, in their ITR for the assessment year 2024-25.
- The CBDT will contact taxpayers via SMS and email about foreign asset disclosures.
Looma News
The Income Tax Department has warned Indian taxpayers about the consequences of not reporting foreign assets or income in their income tax return (ITR). Taxpayers who fail to disclose this information could face a fine of up to Rs 10 lakh under the Black Money and Tax Imposition Act of 2015. This reminder is part of a campaign to encourage taxpayers to meet their tax reporting obligations before the deadline for filing belated and revised ITRs, which is December 31, 2024.
The department has stressed the importance of including foreign assets and income in ITR for the assessment year 2024-25. This includes foreign bank accounts, cash value insurance contracts, investments in foreign businesses, property abroad, and any capital gains from foreign sources. Indian tax residents are required by law to report these foreign assets and income. Failing to do so could lead to heavy fines, as the government works to fight black money.
The Central Board of Direct Taxes (CBDT) has announced that it will send SMS and email reminders to taxpayers who have already filed their ITR for the assessment year 2024-25. These notifications will focus on individuals flagged through international agreements between countries. Even if foreign assets or income are below the taxable threshold, taxpayers must still fill out the Foreign Assets (FA) or Income from Foreign Sources (FSI) schedule in their ITR to avoid penalties.
The Income Tax Department emphasized that hiding foreign assets is a serious crime and will be dealt with under the strict rules of the Black Money Act. Therefore, taxpayers are urged to fully disclose all relevant information in their tax returns to avoid any legal trouble.
