Important Tax Reminder: Failure to Mention The Income In ITR Could Result In Rs 10 Lakh Penalty

The deadline for filing income taxes for fiscal year 2023-24 is July 31st. Those who fail to file their income tax returns by the deadline will be penalized. Even if you file your ITR on time and e-verify it within 30 days, if you fail to mention a specific source of income, you may have to face a penalty.

Taxpayers are expected to report information about their international bank accounts, assets, and income. They must include all Foreign Assets (FA) and Foreign Sources of Income (FSI) on the Foreign Asset Schedule in their Income Tax Return (ITR) for Assessment Year 2023-24.

For the evaluation year 2023-24, this must be completed by July 31st, 2023. Failure to comply with this obligation would result in a Rs 10 lakh penalty under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Who Is Required To File A Foreign Asset Schedule In An ITR?

If you were a tax resident of India in the previous year and had overseas assets or bank accounts, or if you generated foreign income in the preceding year, you may be eligible.

Who Must Fill It?

A resident of India is required to complete a foreign asset schedule for foreign assets held as of December 31, 2022, even if:

  • You have no taxable income or your income is less than the basic exemption level.
  • The same information is recorded in any other schedule (for example, schedule AL).
  • The Foreign Asset is created/acquired from stated foreign or domestic revenue sources.

List Of The Foreign Assets

  • Foreign Bank Accounts
  • Foreign Equity and debt
  • Financial interest in any entity/business
  • Immovable property
  • Any other foreign assets prescribed in Schedule FA
  • Foreign custodial account
  • Foreign cash value insurance contract or annuity contract

Also Read: Avoid These Common Mistakes While Filing Your Income Tax Return

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Stuti Talwar

Expressing my thoughts through my words. While curating any post, blog, or article I'm committed to various details like spelling, grammar, and sentence formation. I always conduct deep research and am adaptable to all niches. Open-minded, ambitious, and have an understanding of various content pillars. Grasp and learn things quickly.

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