ITR AY2024-25: CBDT launches campaign for taxpayers to declare income earned from foreign sources

Black Money and Income tax return: CBDT has launched a Compliance and Awareness Campaign for Assessment Year 2024-25 to support taxpayers in accurately filing the Schedule of Foreign Assets (Schedule FA) and reporting income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR). Compliance with FA and FSI Schedule is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Implementation of Tax Act, 2015, which provides for disclosure of foreign assets and income.

In this initiative, notification messages will be sent via SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25. These messages are targeted at individuals identified through bilateral and multilateral agreements, indicating potential external accounts or assets or foreign sourced income. The purpose is to remind and assist those who may have missed completing the Schedule of Foreign Assets correctly.

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“This initiative aligns with Viksit Bharat’s vision and underlines the Income Tax Department’s commitment to using technology to simplify taxpayer compliance and reduce human interaction. Leveraging data obtained through Automated Exchange of Information (AEOI), the Department uses CBDT to meet tax obligations and This effort is not only in line with the government’s vision of a developed India, it expects all eligible taxpayers to take advantage of this opportunity to contribute to the economic development of the country. It promotes a culture of transparency, accountability and voluntary compliance,” he said in a statement published in 2024.

Important points to note:

1. CBDT has initiated a Compliance and Awareness Exercise for Assessment Year 2024-25 to support taxpayers to accurately fill the Foreign Assets Statement and disclose income from foreign sources in their Income Tax Returns.

2. As a part of this initiative, informative notifications will be sent via SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25.

3. These notifications are directed to persons who indicate that they may have foreign accounts or assets or have received income from foreign countries, as determined by data obtained through bilateral and multilateral agreements.

4. The purpose is to provide a gentle reminder and support to those who may have overlooked filing the Schedule of Foreign Assets in their ITR filed for AY 2024-25, especially in cases involving significant foreign assets.

5. CBDT envisages that all qualified taxpayers will seize this chance to fulfill their tax obligations and play a role in the development of the country’s economy.

6. This initiative is in line with the government’s goal of promoting a culture focused on transparency, accountability and voluntary compliance with tax regulations.