ITR revision deadline If you have any property abroad or are earning from any source, then it is necessary to give its information in ITR. If you do not do this, you may have to pay a fine of up to Rs 10 lakh.
Income Tax Fine: Black money and undeclared income have always been a big issue in India. Tax officials often send notices to those who invest abroad but do not disclose it in their Income Tax Returns (ITR). This causes a huge blow to the country’s economy because black money not only increases corruption and inflation, but also causes a huge loss to the government treasury.
The Income Tax Department issued a brochure on December 11, 2024. It clarified which taxpayers will have to submit scheduled foreign assets (FA) and additional documents in their ITR. If you also do not disclose your foreign investment in ITR, then it can be considered as black money. For this, a fine of up to Rs 10 lakh may have to be paid.
It is mandatory to give information about foreign income in ITR
According to the guidelines of the Income Tax Department, taxpayers will have to give complete information about their foreign accounts. If they have bought shares of a foreign company or have bought property, then information about that will also have to be given. In short, you will have to tell about every property situated abroad, whether you are earning any income from it or not.
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What will happen if you do not give information about foreign property and income?
In the last few years, the Government of India has made many agreements with other countries. Due to this, if a citizen is investing abroad, then his information is easily available. In such a situation, a person who does not give information about foreign investment can be fined up to Rs 10 lakh.
Who has to disclose foreign property and income?
This rule is for all those Indian citizens who have any property abroad or are earning from there. Foreign property includes things like bank accounts, equities, business investments and property holdings. Earnings from foreign sources include interest income, dividends and gross income.
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How to give information about foreign property in ITR?
Gather complete information about your foreign properties. Like what kind of property you have, when did you buy it, how much did you earn from it. There should also be information about the tax you have paid abroad on buying property or earning. You can compile the complete information and fill it easily in ITR. If you are eligible under the Double Tax Avoidance Agreement, then submit Form 67 along with Schedule TR to claim tax benefits.
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