Fill Foreign Assets (FA) Schedule in ITR for A.Y. 2024-25; Know Why?:

Fill Foreign Assets (FA) Schedule in ITR for A.Y. 2024-25; Know Why? In India, Filing an Income Tax Return (ITR) is a mandatory task for people in every financial year. The deadline for filing an income tax return for FY23-24 is 31st July 2024. Individuals who are filing their tax returns for the current year need to disclose all the income earned in the year and can claim deductions as well for which they are eligible to reduce their tax liability. Disclosing all income means, showing income earned in the domestic country or earned in foreign land in their respective ITR. Recently, Income Tax India issued a reminder for taxpayers regarding showing or filling the income amounts earned mainly from foreign land along with the income earned through their profession or job in ITR. Income Tax India wrote on its offical Twitter handle, "Kind Attention: Holders of foreign bank accounts, assets & income! Please fill the Foreign Asset Schedule in the Income Tax Return (ITR) for A.Y. 2024-25 and disclose all Foreign Assets (FA)/ Foreign Source of Income (FSI) if you have foreign bank accounts, assets or income. Due Date to file ITR for A.Y. 2024-25: 31st July 2024. #FileNow" Taxpayers who are holding foreign assets, bank accounts etc., then they need to fill the Foreign Asset Schedule in ITR. The last date to file is July 31, 2024.

Who are requied to fill Foreign Asset Schedule?

Taxpayers who are-

• A Tax Resident of India in the Previous Year
• Own Foreign Asset or Bank Accounts, or
• Have Earned Foreign Income during the Previous Year

Foreign Assests (FA) Includes:

• Foreign Bank Accounts
• Foreign Cash Value Insurance Contract or Annuity Contract
• Financial Interest in any Entitiy/ Business
• Immovable Property
• Foreign Custodial Account
• Foreign Equity and Debt Interest
• Trust, outside India, in which you are a Trustee, Beneficiary or Settlor
• Account(s) in which you have Signing Authority
• Any other Capital Asset
• Any other Foreign Assets as held as prescribed in Schedule FA.

Click Here to Know Who has to mandatory file a Return of Income Tax

Conditions to Fill FSI Schedule

A Resident in India must fill FA/ FSI Schedule for the Foreign Assets/ Accounts held at any time during the Calendar Year 2023. Even If:-

• You do not have any taxable income or your income falls within the basic exemption limit.
• Same information is captured in any other Schedule (like Schedule AL).
• The Foreign Assets are created/ acquired from disclosed sources of foreign income or domestic income.

Consequences of not Disclosing Foreign Income

Failure to disclose the foreign asset/ income in the ITR can attract a penalty of Rs.10 Lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, despite the acquisition of foreign assets out of disclosed income. So, if you are eligible and under the category of the above-mentioned details, do fill your Foreign Asset Schedule in ITR for FY 2023-24 before the deadline.