Income Tax News: Beware! THESE Taxpayers Must File Revised ITR or Else Pay a Fine of 10 Lakh, Check Details

Income Tax News: The Income Tax Department has issued a reminder to taxpayers with foreign assets or income who may have incorrectly filed their tax returns using ITR-1 or ITR-4 forms. These taxpayers are required to file revised or belated returns by December 31, 2024, to avoid penalties and prosecution under the anti-black money law.

The department emphasized that individuals must use the correct forms, specifically ITR-2 or ITR-3, to accurately disclose their foreign assets. Taxpayers failing to provide details of income earned from foreign assets may face fines of up to Rs 10 lakh.

Compliance Campaign Launched to Educate Taxpayers

To raise awareness, the Income Tax Department has launched a compliance-cum-awareness campaign for the 2024-25 assessment year. The campaign aims to educate taxpayers on how to correctly fill out the Schedule Foreign Assets (Schedule FA) and Schedule Foreign Source Income (Schedule FSI) in their ITRs.

What Constitutes Foreign Assets

Taxpayers are required to disclose a variety of foreign assets, including real estate, bank accounts, shares, debentures, and insurance policies. The department clarified that all Indian residents are obligated to report such assets as part of their income tax returns.

The Income Tax Department has already received two lakh ITRs this year containing details of foreign assets and income. However, taxpayers who may have missed out on this disclosure need to revise their returns to remain compliant with tax laws.

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