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The Income Tax Department warned taxpayers that failing to reveal possessions held abroad or earnings can bring in a fine
The last day to submit a belated and modified ITR is December 31.
The Income-Tax Department on Sunday released an advising to taxpayers, specifying that non-disclosure of international possessions or earnings made abroad in their Income Tax Returns (ITR) can bring about a fine of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Compliance-Cum-Awareness Campaign Launched
The division released a public advisory as component of a compliance-cum-awareness project introduced lately by it on Saturday to make certain that such info is reported by the assessee in their ITR for evaluation year (AY) 2024-25.
Definition of Foreign Asset
The advising defined that international possession, for a tax obligation local of India in the previous year, consists of checking account, money worth insurance policy agreements or annuity agreements, monetary passion in any type of entity or organization, unmovable building, custodial accounts, equity and financial obligation passion, rely on which an individual is a trustee, recipient of the settlor, accounts with vocal singing authority, any type of resources possession, and so on, held abroad.
Mandatory Disclosure of Foreign Assets
The division stated taxpayers figuring under this standards “should 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 possession abroad was “obtained from revealed resources.”
Penalty for Non-Compliance
“Failure to disclose foreign asset/income in the ITR can attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015,” the advising mentioned.
Outreach Efforts by CBDT
The Central Board of Direct Taxes (CBDT), the management body for the tax obligation division, had actually stated that as component of the project, it would certainly send out “informative” SMS and email to those resident taxpayers who have already filed their ITR for AY 2024-25.
Identification Through Agreements
The communication will be sent to persons who have been “identified” with info obtained under reciprocal and multi-lateral contracts “recommending” that these individuals may hold foreign accounts or assets, or have received income from foreign jurisdictions.
Purpose of the Campaign
The campaign’s purpose is to remind and guide those who may not have fully completed scheduled foreign assets in their submitted ITR (AY 2024-25), especially in cases involving high-value foreign assets, the CBDT said.
Belated ITR Due Date
The last date to file a belated and revised ITR is December 31.
(With PTI inputs)
