The Central Board of Direct Taxes (CBDT) has advised all taxpayers to review their foreign income and assets before filing their Income Tax Return (ITR) and provide information based on that review.
This advice was given in a special edition of the Income Tax Department’s ‘Samvad’. The campaign has been launched to raise awareness among taxpayers. According to this campaign, taxpayers should provide details of their foreign income and assets in the ITR only after carefully reviewing them.
During the session, CBDT Commissioner (Investigation) Shashi Bhushan Shukla mentioned that all Indian citizens must report information about their foreign assets, including bank accounts, real estate, shares, and insurance policies they own.
Step-by-Step Guide for Reporting Foreign Assets and Income
Shukla mentioned that the Income Tax Department provides a simple guide in the ITR form titled “Foreign Assets and Income.” This guide helps taxpayers report their foreign income and property. He stressed that this rule applies to resident taxpayers and is mentioned in Section 6 of the Income Tax Act.
Who Is a Resident Taxpayer?
Shukla explained that a resident taxpayer is someone who has stayed in India for at least 182 days during the last year or for 365 days in the past four years. If a taxpayer does not meet these conditions, they are considered a non-resident. Non-residents do not need to report foreign income or property.
Clearing Confusion About Foreign Income and Property
Sometimes, taxpayers who don’t have any foreign income or property still report it in their ITR. To clear this up, Shukla explained that only taxpayers with foreign income or assets need to provide this information. If a taxpayer owns property abroad but does not earn income from it, they must still report it in the ITR.
NRIs and New Indian Citizens
If an NRI (Non-Resident Indian) comes back to India and gets Indian citizenship, they must report their foreign property and income. This rule also applies to foreigners who become Indian citizens.