The Central Board of Direct Taxes (CBDT) chairman, Ravi Agarwal, on Monday said that taxpayers should disclose their foreign income or assets in their income tax returns (ITRs) before December 31, 2024. The official said that individuals who haven’t shared these details yet should do the same in their revised return for the 2023-24 financial year before the deadline.


Speaking at the inauguration of the Taxpayers Lounge at the India International Trade Fair (IIFT) in New Delhi, the official said, “The basic intent is to remind taxpayers to declare foreign assets. They can file revised returns by December 31,” reported Business Standard.


Currently, the tax department is in the process of sending SMS and emails to taxpayers who have not disclosed their high-value assets. Regarding the non-disclosure of foreign assets, Agarwal said that the tax authorities in India receive all details about foreign assets from nations under the automatic exchange of information. Then, the authorities match these details with the disclosures made in the ITRs.


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The foreign assets typically include foreign bank accounts, foreign cash value insurance, immovable property outside India, financial interest in any business/entity, accounts in which a taxpayer has signing authority, and any other capital assets.


The tax officials on Sunday warned taxpayers that any failure to make disclosures about assets held abroad or income earned abroad in the ITR could attract a penalty of Rs 10 lakh as part of the anti-black money law.


Talking about the progress in income tax law review, the tax chairman said public discussion is going on and over 6,000 suggestions have been received by the department. “I would invite taxpayers to come forward and give suggestions on international best practice, statute.” he noted.


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