NEW DELHI: The income tax department has launched a compliance and awareness campaign to help taxpayers accurately report any income from foreign sources in their tax returns and also declare their overseas assets. This compliance is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires the full disclosure of foreign assets and income, the department said.
As part of the campaign, the department will send messages through SMS and email to resident taxpayers who have already submitted their tax returns for 2024-25 assessment year. These messages are intended for individuals identified through information received under bilateral and multilateral agreements, suggesting that they may hold foreign accounts or assets, or have received income from foreign jurisdictions.
"The purpose is to remind and guide those who may not have fully completed 'Schedule' foreign assets in their submitted ITRs for AY 2024-25, especially in cases involving high-value foreign assets," says a statement issued by the I-T department.
It said that the initiative aligns with the vision of Viksit Bharat and highlights the tax department's commitment to using technology to simplify taxpayer compliance and reduce human interaction. "By leveraging data obtained through Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system," it added.
The Income-Tax Act, requires residents to disclose their foreign assets and income in their tax returns. Schedule FA (Foreign Assets) in the ITR form is meant for reporting foreign assets, and Schedule FSI (Foreign Source Income) is for reporting income from foreign sources.
Taxpayers can claim tax relief on taxes paid abroad by filing Schedule TR (tax relief).
Failure to disclose foreign assets and income can attract stringent penalties and prosecutions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. It is crucial for taxpayers to comply with these regulations to avoid legal consequences, the department said.
As part of the campaign, the department will send messages through SMS and email to resident taxpayers who have already submitted their tax returns for 2024-25 assessment year. These messages are intended for individuals identified through information received under bilateral and multilateral agreements, suggesting that they may hold foreign accounts or assets, or have received income from foreign jurisdictions.
"The purpose is to remind and guide those who may not have fully completed 'Schedule' foreign assets in their submitted ITRs for AY 2024-25, especially in cases involving high-value foreign assets," says a statement issued by the I-T department.
It said that the initiative aligns with the vision of Viksit Bharat and highlights the tax department's commitment to using technology to simplify taxpayer compliance and reduce human interaction. "By leveraging data obtained through Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system," it added.
The Income-Tax Act, requires residents to disclose their foreign assets and income in their tax returns. Schedule FA (Foreign Assets) in the ITR form is meant for reporting foreign assets, and Schedule FSI (Foreign Source Income) is for reporting income from foreign sources.
Taxpayers can claim tax relief on taxes paid abroad by filing Schedule TR (tax relief).
Failure to disclose foreign assets and income can attract stringent penalties and prosecutions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. It is crucial for taxpayers to comply with these regulations to avoid legal consequences, the department said.
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