While the 2024 calendar year will culminate in another 14 days, taxpayers are expected to disclose any undisclosed foreign income or assets they own.
The Income Tax Department has set December 31 as the deadline for filing a revised return for those who have not disclosed their foreign assets and income.
The tax authorities also reminded taxpayers that failure to disclose foreign assets and income could lead to strict penalties and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
By filing a revised return, taxpayers can:
1. Ensure full and accurate disclosure of all foreign assets and income.
2. Avoid fines and legal consequences due to non-disclosure
3. Even claim any eligible tax credits under the provisions of Indian tax laws and DTAA.
“If you have not declared your foreign assets and income in your original ITR, there is an option to correct this by filing a revised return. The Income Tax Department offers taxpayers the opportunity to correct any omissions or inaccuracies by filing a revised return. For AY2024-25, a revised return can be filed till 31.12.2024,” the income tax department said in a statement.
How to disclose foreign income?
To report foreign assets, taxpayers must go to their income tax form (IT) and report Schedule FA (foreign assets). And to report income from foreign sources, taxpayers report the same in Schedule FSI (Foreign Source Income) of the relevant income tax form.
In addition, taxpayers are entitled to relief from taxes paid abroad by filing Schedule TR (Tax Relief).
Who is a domestic taxpayer?
A resident taxpayer is someone who has lived in India for at least 182 days in the last year or has stayed here for 365 days in the last four years.
The taxpayers who do not meet these criteria are non-residents or ordinarily not residents. Therefore, they do not have to declare foreign income and assets.
