Table of Contents
- Cbdt: Completing Schedule Fa & Schedule Fsi In Their Itr
- Objective Schedule Foreign Assets & Schedule Fsi In Itr:
- Who Is Targeted :
- Importance Of Schedule Fa And Foreign Source Income:
- Action Plan On schedule Fa And Foreign Source Income
- Technology-driven Initiative By Cbdt:
- Next Steps For Income Taxpayers:
CBDT: Completing Schedule FA & Schedule FSI in their ITR
The CBDT has launched a Compliance-Cum-Awareness Campaign for AY 2024-25 to assist taxpayers in accurately completing Schedule Foreign Assets and Schedule Foreign Source Income in their Income Tax Returns. Here's an overview of Completing Schedule Foreign Assets & Schedule FSI in their ITR:
Objective Schedule Foreign Assets & Schedule FSI in ITR:
This CBDT campaign reinforces the Govt commitment to improving compliance via technology, ensuring fairness & transparency in income tax reporting in India.
- To assist taxpayers in meeting compliance requirements for disclosing foreign assets and income under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- This campaign underscores the government's commitment to fostering voluntary compliance and increasing accountability in tax reporting.
Who is Targeted :
- Resident taxpayers who have submitted their Income Tax Returns for AY 2024-25 and may have foreign assets, accounts, or income based on data obtained through bilateral and multilateral agreements like the Automatic Exchange of Information (AEOI).
- Reporting foreign assets is mandatory, even for small holdings or non-taxable individuals. Ignoring this requirement can lead to severe financial penalties and legal consequences under the Black Money Act.
Importance of Schedule FA and Foreign Source Income:
- Schedule FA: Mandatory for residents to disclose foreign bank accounts, immovable properties, financial interests, and other foreign assets.
- Schedule Foreign Source Income: Requires reporting of income sourced from foreign jurisdictions and claiming of relief under DTAA (if applicable).
Action Plan on Schedule FA and Foreign Source Income
Govt provide provides informational messages to guide taxpayers who might have missed reporting or incompletely filled Schedule FA in their Income Tax Returns. Focus on cases involving high-value foreign assets or income. Govt also Guidance Provided: Taxpayers can access step-by-step resources on completing Schedule FA on the Income Tax Department’s official website.
Technology-Driven Initiative By CBDT:
CBDT launched Leverages Automatic Exchange of Information data to identify discrepancies, simplifying compliance, and reducing manual interaction. Promotes a taxpayer-friendly system while ensuring adherence to compliance norms. Govt willing to support Viksit Bharat by promoting a culture of accountability and voluntary disclosure. Encourage contributions to national economic development.
Next steps for income taxpayers:
- All the taxpayers must review the informational messages received. Also, cross-verify the accuracy of Schedule FA and Foreign Source Income entries in their Income Tax Returns. They should use the resources on the Income Tax portal for corrections or updates.
