Taxpayers Alert: CBDT Launches Awareness Campaign for Accurate Reporting of Foreign Assets in ITR 2024-25

The Central Board of Direct Taxes (CBDT) has launched a Compliance-Cum-Awareness Campaign for the Assessment Year (AY) 2024-25 to help taxpayers correctly complete two important sections in their Income Tax Returns (ITR): Schedule Foreign Assets (Schedule FA) and Schedule Foreign Sources of Income (Schedule FSI). These sections require taxpayers to disclose any income or assets they hold outside India.

The government mandates this disclosure under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, to ensure transparency about foreign income and assets.

Key Points:

• Schedule FA and FSI: These sections are crucial for taxpayers who have foreign assets or income from foreign sources. The government requires full disclosure of these in the ITR.
• Campaign Objective: The CBDT is sending out SMS and email notifications to resident taxpayers who have already filed their ITR for AY 2024-25. These individuals are identified through international agreements and may have foreign accounts, assets, or income.
• Target Audience: The messages are meant for individuals who may not have fully filled out Schedule Foreign Assets in their ITR, especially in cases of high-value foreign assets.
• Technology for Compliance: The campaign emphasizes the government’s goal of using technology to simplify the process for taxpayers, reducing the need for human intervention and promoting a more efficient tax system.
• Automatic Exchange of Information (AEOI): The tax department is using data from international exchanges of tax information to cross-check foreign assets and income.

Government’s Vision:

This campaign is part of the Viksit Bharat vision (developed India), focusing on encouraging taxpayers to voluntarily comply with tax laws. It aims to create a transparent and accountable tax system while fostering economic development.

How to Get Help:

For detailed guidance on completing Schedule Foreign Assets, taxpayers are encouraged to visit the official Income Tax Department website www.incometax.gov.in, where step-by-step resources are available.

In summary, the campaign aims to ensure taxpayers accurately report foreign income and assets, promoting transparency, accountability, and voluntary compliance, while leveraging technology to simplify the process.