The India’s Income Tax Department has issued a deadline for all taxpayers who reside in India to file their Income Tax Return (ITR), including foreign income, for the assessment year (AY) 2024-25.
According to the department, the deadline for the filing is Tuesday, December 31, 2024. The department added that any resident who failed to adhere to this order could face a penalty of Rs 10 lakh, in accordance with the anti-black money law.
The India’s Income Tax Department Warns India Residents to File Their Income Tax Return (ITR)
Recently, the Income Tax Department of India announced the last date for all residents in the country to file their ITR for AY 2024-25 with the department.
All taxpayers who reside in India to file their Income Tax Return (ITR) for the AY 2024-25.
The announcement came as a warning to all resident taxpayers who may be guilty of non-disclosure of their foreign assets and income in their Income Tax Return (ITR).
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The Income Tax Department of India highlighted in the announcement that all taxpayers who are residents of India and own assets abroad must declare these in their ITR for the assessment year (AY) 2024-25 to avoid penalty.
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Mandatory Disclosure of Foreign Assets
The department stated that all India residents who earn taxable income and own foreign assets must declare these in their ITR for AY 2024-25.
The list of foreign assets to be files includes:
- Bank accounts,
- Immovable properties,
- Financial interests in entities or businesses,
- Custodial accounts,
- Equity and debt interests,
- Trusts (as trustee, beneficiary, or settlor), and
- Capital assets.
The department added that even if the resident earns an income below the taxable limit, or if the foreign asset was acquired from disclosed sources, it remains mandatory to fill out the Foreign Source Income (FSI) or Foreign Asset (FA) schedule in the ITR.
Hefty Penalty for Non-Compliance
The Income Tax Department added a stern warning that any taxpayer who fails to comply with this requirement by not disclosing their foreign assets or income in their ITR could face a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The advisory and warning is part of a compliance and awareness campaign launched by the Income Tax Department to encourage complete and accurate tax reporting.
Awareness Campaign Details
The Income Tax Department’s administrative arm, the Central Board of Direct Taxes (CBDT), recently rolled out an informational campaign targeting taxpayers.
As part of this initiative:
- SMS and emails will be sent to taxpayers identified through international agreements, which suggest potential ownership of foreign assets or income from overseas jurisdictions.
- The communication aims to remind taxpayers to complete the foreign asset schedules in their ITR, particularly for cases involving high-value foreign assets.
Deadline For Filing And Revising ITR
The CBDT also emphasized that December 31, 2024 is the last date to file a belated or revised ITR for AY 2024-25. The body, therefore, urged taxpayers to include accurate disclosures of their foreign assets and income in their tax returns to avoid penalties.
Encouragement for Voluntary Compliance
The advisory seeks to promote voluntary compliance and transparency among taxpayers, ensuring that foreign income and assets are appropriately accounted for in tax filings.
It also underscores the department’s efforts to uphold accountability in the global financial ecosystem by leveraging bilateral and multilateral information-sharing agreements.
To accurately file their tax returns and ensure compliance with the law, taxpayers are urged to review their financial records and consult tax professionals if necessary.
