The Income Tax Department may impose a hefty penalty of ₹10 lakh on individuals or entities who fail to disclose certain properties or income.

The Income Tax Department has issued a public consultation paper under its Compliance-cum-Awareness Campaign, reminding taxpayers of their obligations as we approach the last date to file belated and revised ITR for AY 2024-25: December 31, 2024.

Key Highlights:

1. Mandatory Disclosure of Foreign Assets and Income

Tax residents of India must report all foreign assets and income in their Income Tax Return (ITR).

Failing to disclose assets like:

1. Bank accounts

2. Equity or loan interests

3. Immovable properties

2. Penalty for Non-Compliance

Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, hiding foreign assets or income may attract a penalty of ₹10 lakh, irrespective of taxable limits.

3. How the Department is Ensuring Compliance

The department will send SMS and emails to identified taxpayers based on information obtained through bilateral and multilateral agreements.

Taxpayers are urged to carefully fill out the Foreign Assets (FA) or Foreign Source Income (FSI) schedules in their ITR.

4. Why This Matters:

Failure to comply can result in hefty fines and even be considered a criminal offense. Accurate reporting helps avoid legal issues and supports a transparent tax system.

Ensure you file your revised or belated ITR by December 31, 2024.

Avoid penalties—stay compliant!