The Income Tax (I-T) Department has urged taxpayers to accurately disclose their foreign assets and income in their tax returns to ensure compliance with Indian tax laws. This comes as part of efforts to curb tax evasion and enhance transparency under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Source:- bbc news
Foreign assets, including bank accounts, immovable properties, and financial interests in any foreign entity, must be declared in the relevant schedules of the income tax return (ITR) forms. Non-disclosure or misreporting can attract severe penalties, including prosecution, under the Black Money Act.
Source:- India Today
The I-T Department has implemented data exchange agreements with multiple countries under global frameworks like the Common Reporting Standard (CRS). These agreements enable the automatic exchange of financial information, making it difficult for taxpayers to hide overseas assets or income.
Tax experts advise that individuals with foreign assets, particularly non-resident Indians (NRIs) and global investors, should consult tax professionals to ensure compliance. Accurate disclosure not only avoids penalties but also strengthens financial credibility.
Taxpayers should note that even dormant accounts or minimal investments abroad must be declared. The department’s initiative aligns with its broader strategy of leveraging technology and international cooperation to detect discrepancies and promote voluntary compliance.
The I-T Department’s nudge comes as a reminder ahead of the tax filing deadline, urging individuals to review their financial statements and report any foreign assets or income accurately. Non-compliance could lead to hefty fines and legal actions, underscoring the importance of timely and precise disclosures.
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