Income Tax Deadline! Last two weeks to disclose your foreign income to avoid penalties | Mint

While the calendar Year 2024 is set to culminate in another 14 days, income taxpayers are meant to reveal any undisclosed foreign income or assets that they possess.

The income tax department has set a deadline of December 31 for filing a revised return for those who failed to disclose their foreign assets and income.

The tax department also reminded taxpayers that the failure to disclose foreign assets and income can lead to stringent penalties and prosecutions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

By filing a revised return, taxpayers can:

1. Make sure that there is complete and accurate disclosure of all foreign assets and income.

2. Avoid penalties and legal consequences as a result non-disclosure

3. Even claim any eligible tax reliefs under the provisions of Indian tax laws and DTAA.

“If you have not disclosed your foreign assets and income in your original ITR, there is an opportunity to rectify this through filing a revised return. The Income Tax Department allows taxpayers to correct any omissions or inaccuracies by filing a revised return. For the A.Y.2024-25 revised return can be filed up to 31.12.2024,” said the income tax department in a statement.

How to reveal foreign income?

To report foreign assets, taxpayers are supposed to go to their income tax (IT) form and report Schedule FA (Foreign Assets). And to report income from foreign sources, taxpayers report the same in Schedule FSI (Foreign Source Income) of the relevant income tax form.

Additionally, taxpayers are entitled to claim relief on taxes paid abroad by filing Schedule TR (Tax Relief).

Who is a resident taxpayer?

A resident taxpayer is someone who has lived in India for a minimum of 182 days during the previous year or stayed here for 365 days during the past four years. 

The taxpayers who do not meet these criteria are either non-residents or not ordinarily residents. Therefore, they are not required to declare foreign income and assets.