If you did not disclose your foreign assets in the original Income Tax Return (ITR) filed for AY 2024-25, you must file a revised return as failure to do so could result in a penalty of up to Rs 10 lakh. The revised ITR can be filed up to December 31, 2024.
In an advisory issued on November 18, the Income-Tax Department has warned taxpayers that failure to disclose assets held abroad or income earned in foreign shores in the ITR can attract a penalty of Rs 10 lakh under the anti-black money law.
“If you have not disclosed your foreign assets and income in your original ITR, there is an opportunity to rectify this through filing a revised return. The Income Tax Department allows taxpayers to correct any omissions or inaccuracies by filing a revised return. For the A.Y.2024-25 revised return can be filed up to 31.12.2024,” the advisory said.
Also read: Key Income Tax Deadlines You Can’t Afford to Miss: Only a few days left! Avoid heavy penalties
E-campaign aims to remind taxpayers of their obligation
The advisory has been issued by the tax department as part of an e-campaign aims to remind taxpayers of their obligation to disclose foreign assets and income reported under Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
CRS and FATCA are international frameworks designed to combat tax evasion by increasing transparency and cooperation among tax authorities worldwide.
The advisory specified that foreign assets, for a tax resident of India in the previous year, include bank accounts, cash value insurance contract or annuity contract, financial interest in any entity or business, immovable property, custodial account, equity and debt interest, trusts in which a person is a trustee, beneficiary of settlor, accounts with singing authority, any capital asset etc., held abroad.
The department said taxpayers figuring under this criteria “must mandatorily” fill the foreign asset (FA) or foreign source income (FSI) schedule in their ITR even if their income was “below the taxable limit” or the asset abroad was “acquired from disclosed sources”.
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