NEW DELHI: The income tax department would send ‘reminders’ to taxpayers who missed disclosing foreign assets or income from foreign sources while filing income tax returns (ITRs) for assessment year (AY) 2024-25.
In a press statement, the tax department has said that it would guide and assist taxpayers with accurately completing Schedule Foreign Assets and reporting income from foreign sources in their Income Tax Returns (ITR).
This is part of a Compliance-Cum-Awareness Campaign for Assessment Year (AY) 2024-25 launched by the Central Board of Direct Taxes (CBDT). As part of this campaign, informational messages will be sent through SMSes and email to resident taxpayers who have already submitted their ITR for AY 2024-25.
“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 ITR for AY 2024-25, especially in cases involving high-value foreign assets,” says a statement by the CBDT.
Compliance with Schedule FA and FSI 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. According to the tax department, the initiative highlights the Income Tax Department’s commitment to using technology to simplify taxpayer compliance and reduce human interaction.
“By leveraging data obtained through the Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system,” says the tax department.
The CBDT expects all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation’s economic development.
This effort not only is in line with the government’s vision for a developed India but also fosters a culture of transparency, accountability, and voluntary compliance.