Many times, taxpayers knowingly or unknowingly hide some information while filing ITR, considering it unnecessary. These also include details like property abroad. But the Income Tax Department has clarified that if a taxpayer does not give information about the property located abroad or the income earned, then a heavy penalty can be imposed on him.
While filing Income Tax Return (ITR), all the information should be given correctly. But, many times taxpayers knowingly or unknowingly hide some information considering it unnecessary. Doing this can prove to be very costly. The Income Tax Department can also impose a hefty fine on taxpayers for this.
The Income Tax Department has warned taxpayers that not giving information about property located abroad or income earned abroad in ITR can lead to a fine of Rs 10 lakh under the anti-black money law. The department also issued a public consultation to ensure that taxpayers enter such information in their ITR for Assessment Year 2024-25.
What kind of income will have to be reported
The consultation clarified that foreign assets for a resident of India include bank accounts, cash value insurance contracts or annuity contracts, financial interest in an entity or business, immovable property, custodian 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 that taxpayers falling under this criterion will have to mandatorily fill the Foreign Asset (FA) or Income from Foreign Sources (FSI) schedule in their ITR, even if their income is below the taxable limit or the assets abroad have been acquired from disclosed sources.
Income Tax Department will send mail to taxpayers
The Central Board of Direct Taxes (CBDT), the administrative body for the Income Tax Department, had said that under the campaign, it will send informative SMS and emails to those taxpayers who have already filed their ITR for the assessment year 2024-25. This will give them a chance to correct their mistake and provide the necessary information as per the rules.
This SMS and email will be sent to such persons who have been identified through information received under bilateral and multilateral agreements, which suggests that these persons may hold foreign accounts or assets or have received income from foreign jurisdictions. The last date for filing late and revised ITR is December 31.
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