Resident Taxpayers mandated to disclose Foreign Asset and Income
The recent launch of the Compliance-Cum-Awareness Campaign by the Central Board of Direct Taxes (CBDT) aims to assist taxpayers in accurately reporting foreign assets and income in their Income Tax Returns (ITR) for Assessment Year (AY) 2024-25. This initiative is in line with the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which mandates full disclosure of foreign assets and income.
Through SMS and email notifications, CBDT is reminding taxpayers to fully disclose their foreign assets and income.
Who needs to disclose the Foreign Asset and Income:
Resident taxpayers who have already filed their ITR or whose filing is still pending for AY 2024-25 having Foreign Assets (FA), accounts, or income. Last date for filing the belated and revised ITR is 31st December 2024.
What needs to be disclosed:
A resident in India must mandatorily fill FA Schedule for the foreign Assets/income held at any time during the calendar year 2023 even if,
· Income is below taxable limit
· Foreign assets are acquired from Disclosed sources
Penalty on failure of disclosure:
Failure to disclose foreign assets and income can lead to penalties of up to INR 10 lakh. Additionally, non-compliance could result in the revocation of benefits under the Double Taxation Avoidance Agreements (DTAA).
The CBDT has advised taxpayers to visit the Income Tax Department's website for more information on completing these schedules accurately.
