Income Tax Department warned: Fine of Rs 10 lakh will be imposed for not disclosing foreign assets, income

On Sunday, the Income Tax Department gave a warning to the taxpayers. As per this warning, taxpayers have to pay a fine of up to Rs 10 lakh if they do not disclose the assets located abroad or the income earned abroad in their income tax returns.

This was informed by the Income Tax Department on Saturday under the newly initiated compliance-cum-awareness campaign. The department warned the taxpayers that this information must be given in the income tax return in the assessment year 2024-25. One of the obligations required of an Indian taxpayer by the department is the disclosure of any capital asset, such as what is contained in foreign bank accounts, cash value insurance or annuity contracts, interest in financial partnership in an entity or business, every immovable property, custodial account, equity and debt interest, etc.

The Income Tax Department said that taxpayers must 'mandatorily' fill the Foreign Assets (FA) or Foreign Source Income (FSI) schedule in their ITR even if their income is 'below the taxable limit'. The advisory said, 'Non-disclosure of foreign assets/income in ITR is liable to 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 of the tax department, had said that under the campaign, messages and emails will be sent to those taxpayers who have already filed their ITR for 2024-25. This communication will be sent to such persons who have been 'identified' through information received under bilateral and multilateral agreements that they may have assets or foreign income abroad. The CBDT said that this campaign aims to remind those who have not given details of foreign assets in their submitted ITR (AY 2024-25). The last date for filing an ITR is December 31.