Foreign Assets Abroad under Income Tax's Scanner; Notices issued to 400 Individuals:

Foreign Assets Abroad under Income Tax's Scanner; Notices issued to 400 Individuals The Income Tax Department has given noitces to at least 400 individuals who have not revealed their assets abroad, which are primarily held in the UAE, Singapore, and the United Kingdom, according to officials familiar with the matter. The move comes after India acquired a "big chunk" of data under its Automatic Exchange of Information agreement with overseas counterparts. The information received includes the names of over a thousand individuals who have not revealed their foreign sources including income and property in the ITR. The Black Money Act demands complete disclosure of foreign assets and income; hence the aforementioned declaration is essential. Failure to comply may result in a penalty of Rs. 10 lakh. "Notices are served under Section 131 of the Income Tax Act," a knowledgeable source stated. The aforementioned section deals with summoning any Indian citizen for questioning if the department has reason to believe that they have concealed earnings. Without providing any information about the notices, the source stated that they are high-net-worth individuals from cities such as Mumbai, Delhi, Chandigarh, and Ahmedabad. He noted that the primary goal is to encourage taxpayers to report abroad assets, as they can file revised returns by December 31 with all declarations, according to the source. Foreign assets often comprise foreign bank accounts, foreign cash value insurance, financial stake in any business or corporation, immovable property outside of India, foreign equity or debt interest, accounts with which an assessee has signing authority, and any other capital assets.