New Delhi. Black money and undeclared income have always been a big issue in India. Tax officials often send notices to those who invest abroad but do not disclose it in the Income Tax Return (ITR). This causes a huge blow to the country's economy, because black money not only increases corruption and inflation, but also causes a huge loss to the government treasury.

The Income Tax Department issued a brochure on December 11, 2024. It clarified which taxpayers will have to submit scheduled foreign assets (FA) and additional documents in their ITR by December 31, 2024. If you also do not disclose your foreign investment in ITR, then it can be considered black money. For this, a fine of up to Rs 10 lakh may have to be paid.

It is mandatory to give information about foreign income in ITR

According to the guidelines of the Income Tax Department, taxpayers will have to give complete information about their foreign accounts. If they have bought shares of a foreign company or have bought property, then information about that will also have to be given. In short, you will have to tell about every property situated abroad, whether you are earning any income from it or not.

What will happen if information about foreign assets and income is not given?

In the last few years, the Indian government has made many agreements with other countries. Due to this, if any citizen is investing abroad, then his information can be easily obtained. In such a situation, a person who does not give information about foreign investment can be fined up to Rs 10 lakh.

Who has to disclose foreign assets and earnings?

This rule is applicable for all Indian citizens who have assets or income abroad. Foreign assets include things like bank accounts, equities, business investments and property holdings. Earnings from foreign sources include interest income, dividends and gross income.

How to declare foreign assets in ITR?

You should gather complete information about your foreign assets. Like what kind of property you have, when did you buy it, how much did you earn from it. You should also know the tax you have paid abroad on buying property or earning. You can compile the complete information and fill it easily in ITR. If you are eligible under the Double Tax Avoidance Agreement, then submit Form 67 along with Schedule TR to claim tax benefits.