Foreign Assets Disclosure Deadline Approaches: Taxpayers Alert

The Indian Income Tax Department has urged taxpayers to file accurate returns detailing foreign assets and income. The Central Board of Direct Taxes has emphasized the need for compliance, particularly regarding employee stock options and foreign income. Taxpayers must submit the correct forms by December 31 to avoid penalties.

The Indian Income Tax Department has urged taxpayers to file accurate returns detailing foreign assets and income, under a new campaign initiated by the Central Board of Direct Taxes (CBDT). The initiative highlights the importance for taxpayers, specifically those categorized as Indian residents for tax purposes, to use the correct Income Tax Return (ITR) forms.

Amid growing emphasis on transparency, the CBDT has stressed the need for taxpayers to report assets acquired or income earned outside India, including through employee stock options. Senior officials have outlined the deadline of December 31 for filing these returns and emphasized the repercussions of non-compliance.

With international agreements in place, such as the Double Taxation Avoidance Agreements and the common reporting standards, the Indian tax authorities continually receive data about foreign assets. The initiative has seen a steady rise in compliance, with two lakh submissions already made this assessment year.

(With inputs from agencies.)