Income Tax: Those who have such assets or income but have filed ITR-1 or ITR-4 will have to file revised or belated returns by December 31 to avoid penalties and prosecution as prescribed under the anti-black money law.
Income Tax Department has urged Indian citizens to file the correct ITR form to disclose their foreign assets. If they have submitted the wrong form, revise their returns. The last date for filing revised ITR is December 31, 2024. The department has warned taxpayers that if they do not disclose the income earned from their foreign assets in the ITR, they will be fined up to Rs 10 lakh.
According to the department, two lakh income tax returns (ITRs) have been filed so far during the current assessment year giving details of foreign assets and income. A senior official said that resident Indians are required to inform the Income Tax Department about the shares received from their employers and income earned through employee stock options by filling the foreign assets and foreign source income schedule.
Campaign started
The department has recently launched a compliance-cum-awareness campaign for the assessment year 2024-25 to inform taxpayers about correctly filling the Schedule Foreign Assets (Schedule FA) and income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR).
They will have to fill the revised form
According to Shashi Bhushan Shukla, Commissioner (Investigation) in CBDT, those who have such assets or income but have filed ITR-1 or ITR-4 will have to file revised or belated returns by December 31 to avoid penalty and prosecution prescribed under the anti-black money law.
Which form should taxpayers fill
According to the department, the taxpayer should use ITR-2 or ITR-3 as per his tax profile to correctly reflect the Schedule Foreign Assets (Schedule FA).
What is included in foreign assets
According to the department, all Indian residents are required to declare their foreign assets. This can include real estate, bank accounts, shares, debentures, insurance policies or any other financial assets.
