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Attention Taxpayers! Don't Forget To Mention This Income Source While Filing ITR As Failure Will Attract Penalty Of Rs 10 Lakh

It must be completed for assessment year 2023-24: 31st July, 2023. Taxpayers will attract a penalty of Rs 10 Lakh, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

Attention Taxpayers! Don't Forget To Mention This Income Source While Filing ITR As Failure Will Attract Penalty Of Rs 10 Lakh File Photo

New Delhi: The income tax deadline for the fiscal year 2023-24 is July 31st. Those who fail to file their income tax returns before the deadline will be charged a penalty. Even if you file your ITR on time and e-verify it within 30 days, you might face a penalty if you fail to disclose a specific source of income.

Taxpayers are required to disclose the details of any foreign bank accounts, assets, and income they have. They must fill out the Foreign Asset Schedule in the Income Tax Return (ITR) for Assessment Year 2023-24 and disclose all Foreign Assets (FA) and Foreign Source of Income (FSI).

This must be completed by July 31st, 2023, for assessment year 2023-24. Taxpayers who fail to comply with this requirement will attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Who Needs To File Foreign Asset Schedule In ITR?

If you are a tax resident of India in the previous year and own foreign assets or bank accounts, or have earned foreign income during the previous year.

Who Else Need To Fill It?

A resident in Indian must fill foreign asset schedule, for the foreign assets held as on December 31st 2022 even if:

You don’t have any taxable income or your income falls within basic exemption limit.

Same information is captured in any other schedule (like schedule AL).

The Foreign Asset is created/acquired from disclosed sources of foreign or domestic income.

What are the Foreign Assets (FA)?

Foreign Bank Accounts.

Foreign Equity and debt.

Financial interest in any entity/business.

Immovable property.

Any other foreign assets prescribed in Schedule FA.

Other requirements Include:

Foreign custodial account.

Foreign cash value insurance contract or annuity contract.

Account (s) signing authority.

A name as a trustee, beneficiary or settlor in trusts, outside India.