The Income Tax Department has investigated some cases in which taxpayers did not include foreign assets when filing their ITR returns. Such taxpayers will be issued notices by the department. To avoid punitive action, taxpayers should follow the steps outlined in this article.
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New Delhi. The Income Tax Department on Thursday said it has identified high-risk cases where taxpayers have not disclosed details of their foreign assets in their income tax returns for the assessment year 2025-26. The department said that starting November 28, SMS and emails will be sent to these taxpayers advising them to file revised income tax returns (ITRs) by December 31, 2025, to avoid penal action.
Last year too, the Income Tax Department had sent messages under the Automatic Exchange of Information (AEOI) system to taxpayers reported by foreign jurisdictions who had not disclosed details of their foreign investments and accounts in their ITRs. This initiative resulted in a total of 24,678 taxpayers amending their returns and disclosing foreign assets worth Rs 29,208 crore and foreign income worth Rs 1,089.88 crore.
The department said in a statement that analysis of AEOI information for the financial year 2024-25 has revealed several cases where foreign assets are likely to exist but were not disclosed in this year’s returns. The Central Board of Direct Taxes (CBDT) receives information on foreign financial assets of Indian residents through information-sharing systems—the Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act.
This information helps identify potential errors in returns and guide taxpayers towards proper compliance. The campaign aims to ensure accurate and complete disclosure of foreign assets (FA) and foreign source income (FSI) sections in the ITR. Correct disclosure of foreign assets and foreign source income is legally mandated under the Income Tax Act, 1961 and the Black Money Act, 2015.
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