Unveiling Hidden Wealth: IT Department Targets Foreign Asset Non-disclosure

The Income Tax Department targets high-risk cases of undisclosed foreign assets in ITRs for AY 2025-26. From November 28, 2025, SMS and emails will urge taxpayers to amend filings to avoid penalties. Previous initiatives resulted in Rs 29,208 crore being disclosed, improving compliance and accuracy.

The Income Tax Department is intensifying its efforts to identify undisclosed foreign assets by targeting high-risk cases for the Assessment Year 2025-26. Thousands of targeted individuals will receive SMS and emails starting November 28, urging them to amend their Income Tax Returns by December 31 to avoid harsh penalties.

Last year's innovative approach led to significant results, with 24,678 taxpayers not initially contacted voluntarily revising returns to reveal foreign assets worth Rs 29,208 crore. The campaign aims for accurate tax reporting, guided by data received through global frameworks like the Automatic Exchange of Information (AEOI) and the Foreign Account Tax Compliance Act (FATCA).

The Central Board of Direct Taxes (CBDT) stresses the importance of timely compliance to maintain transparency and accountability. Accurate reporting of foreign assets is mandated by the Income-tax Act, 1961, and the Black Money Act, 2015, ensuring taxpayers do not bypass obligations, fostering a culture of transparency.

(With inputs from agencies.)