Image Source : FREEPIK Income Tax Return deduction refund concept.
Taxpayers who have failed to declare foreign assets or income in their Income Tax Return (ITR) for AY 2024-25 can file a revised return by December 31, 2024, to avoid a penalty of up to Rs 10 lakh. The advisory issued by the Department of Taxation emphasizes compliance with CRS, FATCA and other international reporting regulations to prevent tax evasion.
Revised return deadline announced
The Tax Department has advised taxpayers that if the original ITR missed foreign assets or income, then file an amended return by December 31, 2024. Failure to comply may result in penalty under the anti-black money law.
Penalty for non-disclosure
Taxpayers who fail to declare their foreign assets and income can face a penalty of Rs 10 lakh under the Black Money Act. The Department clarified that this applies even if the foreign assets originate from within disclosed locations or even if the income is below the taxable threshold.
Advisory as part of e-campaign
The advisory issued on November 18 was part of an e-campaign aimed at raising awareness of mandatory disclosures under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) Such international policies promote tax transparency and combat evasion.
Foreign Assets to Be Declared
Foreign assets include:
Bank accounts
Cash value insurance contracts
Financial interests in entities
Immovable property abroad
Trusts and custodial accounts
Any capital assets held overseas
Taxpayers resident in India have to declare these assets in the Foreign Assets (FA) or Foreign Income (FSI) schedule of their ITR.
Taxpayers are urged to review their filings and utilize the opportunity to file a revised return to ensure compliance and avoid penalties.
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