The Income Tax Department has recently issued a strict warning. If you have property or income abroad and do not show it in your Income Tax Return (ITR), you may have to pay a fine of up to Rs 10 lakh. This decision has been taken to curb black money and ensure tax compliance.

Let us understand this issue in simple words.

What is the purpose of the new strictness?

The Indian government aims to curb black money. Many people earn property or income abroad but do not declare it in their returns.

• The Black Money Act, implemented in 2015, has given the Income Tax Department the power to trace assets hidden abroad.
• Now the department is easily obtaining information about foreign accounts and properties under international agreements.

To whom does this rule apply?

This rule applies to all Indian taxpayers who:

• Are a resident taxpayer of India.
• Earn property or income abroad.

Even if their income is below the taxable limit, they will still have to disclose foreign assets.

A fine of Rs 10 lakh

If you do not disclose foreign income or assets, a fine of up to Rs 10 lakh can be imposed.

legal action

Undeclared assets will be considered black money, and there is a provision for strict punishment for it.

What needs to be declared?

You need to declare the following in your ITR:

• Foreign bank accounts.
• Immovable property purchased abroad.
• Shares and investments of foreign companies.
• Income earned from abroad (such as rent, interest, or salary).
• What to do to avoid fines?
• Provide the right information at the right time:
• The last date for filing returns for assessment year 2024-25 is December 31.

Correct old returns

If any asset or income has been missed earlier, get it revised immediately.

Consult an expert

For any doubts about filing an ITR, seek the help of a tax expert.

Transparency is essential

It is not wrong to have foreign income or assets, but hiding it can lead to heavy penalties and legal action. Disclose your assets correctly in time and avoid penalties. Follow the law and be an honest taxpayer.