Ravi Agarwal, Chairman of the Central Board of Direct Taxes (CBDT), has urged taxpayers to disclose any foreign income or assets they may have missed while filing their Income Tax Returns (ITRs). They have until December 31 to file revised returns and comply with this requirement
Department’s Proactive Approach
The Income Tax Department is actively sending SMS and email notifications to individuals who haven’t declared high-value assets. This initiative aims to ensure better compliance and reduce instances of hidden foreign wealth.
Agarwal highlighted that the tax department receives detailed information about foreign assets through automatic exchange agreements with other countries. He emphasized that the primary goal is to remind taxpayers of their obligation to disclose these assets and income.
Types of Foreign Assets to Declare
Taxpayers need to disclose various types of foreign assets, including:
- Foreign bank accounts
- Cash-value insurance policies
- Financial interest in foreign entities
- Immovable property abroad
- Foreign equity or debt investments
- Accounts where the taxpayer has signing authority
- Other foreign capital assets
Penalties for Non-Compliance
Failure to declare foreign assets or income in ITRs can lead to severe consequences. Under the anti-black money law, non-disclosure can attract a penalty of ₹10 lakh. This measure underscores the government’s commitment to curbing tax evasion and ensuring transparency.
Final Reminder
The CBDT encourages taxpayers to take advantage of this opportunity to rectify any omissions by filing revised returns before the December 31 deadline. This step ensures compliance and avoids hefty penalties.
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