Income Tax: Non-disclosure of foreign assets, income will attract a fine of 10 lakh rupees
New Delhi| The Income Tax Department on Sunday cautioned taxpayers that if they did not disclose assets held abroad or income earned abroad in their income tax returns, it could result in a fine of up to Rs 10 lakh on taxpayers.
The Income Tax Department gave this information as part of the recently launched compliance-cum-awareness campaign. The department warned taxpayers that they must provide this information in income tax returns in the assessment year of 2024-25. The department said that it is necessary for taxpayers in India to provide information about foreign bank accounts, cash value insurance contracts or annuity contracts, financial partnerships in any entity or business, real estate, custodial accounts, equity and loan interest, etc. of any capital asset.
The Income Tax Department said taxpayers will have to ‘essentially’ fill the Foreign Assets (FA) or Foreign Source Income (FSI) schedule in their ITR even if their income is ‘below the taxable limit’. “Non-disclosure of foreign assets/income in the ITR is punishable with a fine of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015”, the advisory said.
The Central Board of Direct Taxes (CBDT), the administrative body of the tax department, had said that the campaign would send messages and emails to taxpayers who have already filed their ITR for 2024-25. This communication will be sent to individuals who have been ‘identified’ through information obtained under bilateral and multilateral agreements that they may have assets or foreign income abroad. The CBDT said the campaign is aimed at reminding those who have not provided details of foreign assets in their submitted ITRs (AY 2024-25). The deadline for filing ITR is 31 December.
