Suspense Crime Sach Ka Dam
The Income Tax Department on Sunday cautioned taxpayers that non-disclosure of assets located abroad or income earned abroad in ITR could attract a penalty of Rs 10 lakh under the anti-black money law. The department on Saturday issued a public consultation as part of its recently launched compliance-cum-awareness drive to ensure that taxpayers file such information in their income tax returns (ITR) for the assessment year 2024-25.
What are foreign assets?
It clarified that foreign assets for a person resident in India 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. The department said taxpayers falling under this criterion must “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 assets abroad are “acquired from disclosed sources.”
A fine of Rs 10 lakh may be imposed.
According to the advisory, “Non-disclosure of foreign assets/income in ITR may attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.” The Central Board of Direct Taxes (CBDT), the administrative body for the tax department, had said that under the campaign, it will send “informative” SMSes 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 belated and revised ITRs is December 31.
