Accurately disclose foreign income: IT department starts campaign | India News – Times of India

NEW DELHI: The income tax department has launched a compliance and awareness campaign to help taxpayers accurately declare all foreign source income in their tax returns and also declare their foreign assets. This compliance is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires full disclosure of foreign assets and income, the ministry said.
As part of the campaign, the department will send messages via SMS and email to domestic taxpayers who have already filed their tax returns for the assessment year 2024-2025. These messages are intended for individuals who have been identified through information received under bilateral and multilateral agreements indicating that they may maintain foreign accounts or assets, or have received income from foreign jurisdictions.
“The aim is to remind and guide those who may not have fully filled the Foreign Assets ‘Schedule’ in their filed ITRs for AY 2024-25, especially in cases involving foreign assets of high value,” a statement from the IT department.
It said the initiative is in line with the vision of Viksit Bharat and emphasizes the tax authorities’ commitment to use technology to simplify taxpayer compliance and reduce human interaction. ‘By using data obtained via Automatic exchange of information (AEOI), the department is working to create a more efficient, taxpayer-friendly system,” it added.
The income tax law requires residents to report their foreign assets and income on their tax returns. Schedule FA (Foreign Source Income) in the ITR form is for reporting foreign assets, and Schedule FSI (Foreign Source Income) is for reporting income from foreign sources.
Taxpayers can claim tax credits on taxes paid abroad by filing Schedule TR (tax credits).
Failure to disclose foreign assets and income can lead to severe penalties and prosecutions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. It is critical for taxpayers to comply with these regulations to avoid legal consequences, the ministry said. .