Big news for tax payers. If you are planning on filing ITR soon, then this article is for you. If you are trying to hide something, then you’ll not be spare. Because now the Income Tax Department has given a strict warning to taxpayers. If foreign assets or earnings are concealed, a penalty of up to Rs 10 lakh can be imposed.
IT Rules
This rule comes under the law made to prevent black money. This warning has also been issued so that all taxpayers fill all the information correctly in their Income Tax Return (ITR) for the financial year 2024-25. The department wants people to follow the rules of filing taxes and understand them well. It is also important for you to know what is considered a foreign asset.
According to the Income Tax Department, any citizen of India who has a bank account, insurance policy, stake in companies, immovable property, custodial account, shares, debt, trust, or any other capital asset abroad will have to give full details of foreign assets or income in his ITR. This rule applies to all those whose income is below the tax limit or whose assets are acquired from declared sources.
What has the CBDT said?
The Central Board of Direct Taxes (CBDT) has clearly stated that if a person conceals foreign assets or income information, he can be fined under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Under this drive, CBDT will send SMS and emails to all those who have submitted their ITR for the assessment year 2024-25. These messages will especially include those who are likely to have foreign accounts or assets under bilateral and multilateral agreements or to receive income from foreign sources.
What is the purpose of this problem?
The objective of this exercise is to remind and guide the people, especially those having high-value foreign assets, to fill up the foreign asset schedule correctly in their ITRs. The last date to file late or updated ITR is December 31, 2024. Remember, it is your responsibility to provide accurate and complete information. If you do not do so, you may have to face legal action.
