New Delhi: The Income Tax Department has warned that a fine of Rs 10 lakh can be imposed for not disclosing assets located abroad or income earned abroad in the income tax return. A fine of Rs 10 lakh can be imposed under the Anti Black Money Law.
The Income Tax Department has issued a public consultation letter for taxpayers as part of the compliance-cum-awareness campaign. It emphasizes that taxpayers should enter such information in their Income Tax Return (ITR) for the assessment year 2024-25 this year and do not hide any kind of information.
Information given in the consultancy letter
It has been clarified in the consultancy letter that it is important for the tax resident of India to keep some important things in mind last year. Under this, if they have been involved in any tax related activity, then they will have tax liability in India and it is necessary to include it in the ITR. Know what is included in this-
- Non-disclosure of foreign assets and income will attract penalty
- Foreign assets include bank accounts, cash value insurance contracts or annuity contracts, financial interest in an entity or business, real estate, equity and loan interests, trusts in which the individual is a trustee, beneficiary of the settler, accounts with signature authority, custodian accounts, any capital gains assets held abroad, etc.
How will the information be sent?
The CBDT had said that under the campaign, it will first send SMS and email to those resident taxpayers who have already filed their ITR for the assessment year 2024-25. This will be sent to such taxpayers who have been identified through information received under bilateral and multilateral agreements.
Hiding information about foreign assets is a crime
The Income Tax Department said that taxpayers falling under this criterion must mandatorily fill the foreign assets-Foreign Assets (FA) or Income from Foreign Source (FSI) schedule in their ITR. The income of such people may be less than their taxable limit or the property abroad has been acquired from declared sources. Non-disclosure of foreign assets/income in ITR can attract a penalty of Rs 10 lakh under the Black Money and Imposition of Tax Act, 2015.
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