With the deadline for filing Income Tax Returns (ITRs) for Assessment Year 2023-24 approaching, the Income Tax department has issued a crucial reminder to holders of foreign bank accounts, assets, and income. The advisory urges individuals to remember the obligation of filling out the Foreign Asset Schedule in their ITR, ensuring the disclosure of all Foreign Assets (FA) and Foreign Sources of Income (FSI) if they possess foreign bank accounts, assets, or receive income from abroad.
The Income Tax department emphasizes that the disclosure of foreign assets and income is of utmost importance to maintain transparency and compliance with tax regulations. Failure to disclose such foreign assets and income can have serious consequences, as it may result in a penalty of Rs 10 Lakh under the Black Money (Undisclosed Foreign Income & Assets) & Imposition of Tax Act, 2015.
To avoid penalties and legal implications, taxpayers are urged to carefully review their financial records and ensure the accurate reporting of any foreign assets or income. The Foreign Asset Schedule is a vital component of the ITR filing process, and all individuals falling under the aforementioned category are required to fulfill this obligation by the due date, which is set for 31st July 2023 The Income Tax Department seeks to maintain transparency and fairness in the tax system by ensuring the proper disclosure and taxation of foreign assets and income. This initiative aims to curb tax evasion, encourage compliance, and promote the principles of fiscal responsibility among taxpayers.
