Aiming for Transparency in Foreign Income Reporting
NEW DELHI: The Central Board of Direct Taxes (CBDT) has launched a Compliance-Cum-Awareness Campaign for Assessment Year (AY) 2024-25. The initiative focuses on guiding taxpayers in accurately disclosing foreign assets and income in their Income Tax Returns (ITR). This measure aligns with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which mandates full transparency in reporting foreign financial interests.
Key Features of the Campaign
To ensure compliance, the campaign uses technology-driven approaches, including:
– Automated Notifications: Informational SMS and emails are being sent to taxpayers suspected of underreporting foreign assets or income.
– Data Sharing Agreements: Information is derived from bilateral and multilateral agreements, especially through the Automatic Exchange of Information (AEOI).
– Focus on High-Value Disclosures: Special emphasis is placed on cases involving high-value foreign holdings to encourage full compliance with Schedule Foreign Assets (Schedule FA) and Schedule Foreign Source Income (Schedule FSI).
Extended Deadlines and Technological Integration
The campaign coincides with the recent extension of the ITR filing deadline to November 15, 2024, allowing more time for accurate disclosures. Leveraging data analytics, the CBDT aims to foster a transparent and taxpayer-friendly compliance ecosystem, aligning with the vision of ” Viksit Bharat “ or ” Developed India.”
Resources for Taxpayers
Taxpayers are encouraged to use the resources available on the Income Tax Department’s website ([www.incometax.gov.in](https://www.incometax.gov.in)) for detailed guidance. This includes step-by-step instructions on completing Schedule FA, ensuring clarity and accuracy in reporting foreign income and assets.
Credits: PIB, NEW DELHI.
Web Team, C6N
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