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Highlights on Extended deadline for declaring foreign assets & ITRs
Tax Dept. has officially extended the deadline for filing belated and revised Income Tax Returns (ITRs) for the fiscal year 2023-24 (AY 2024-25) from Dec 31, 2024, to Jan 15, 2025. This provides an additional window for taxpayers, particularly those with foreign assets or income, to update their filings: Maintain compliance, use applicable schedules, Accurately declare assets in Schedule FA (Foreign Assets), income in Schedule FSI (Foreign Source Income), and claim relief under Schedule TR (Tax Relief). Extended deadline for declaring foreign assets and income in Income Tax Returns (ITRs) and emphasizes ensure accuracy in reporting foreign assets and income compliance requirements under Indian tax laws.
Highlights on Foreign Asset Declaration Deadline
- The Tax Department has extended the deadline for filing revised and belated ITRs for the fiscal year 2023-24 (AY 2024-25) to January 15, 2025. This is particularly important for individuals who need to declare foreign assets or income.
- Indian residents must report their foreign assets and income in accordance with the Income-tax Act, 1961. This includes:
- Schedule FA: Reporting foreign assets such as bank accounts, financial investments, and properties.
- the Schedule FSI: Declaring income from foreign sources (e.g., interest, dividends).
- Schedule TR: Claiming tax relief for taxes paid abroad.
- The Indian government uses two international frameworks to access detailed information on foreign financial accounts:
- CRS (Common Reporting Standard): An OECD initiative requiring financial institutions to share account details with the taxpayer's home jurisdiction.
- FATCA (Foreign Account Tax Compliance Act): A U.S. law that mandates foreign financial institutions to report accounts held by U.S. taxpayers to the IRS.
- Failing to disclose foreign assets and income can lead to severe penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Taxpayers are encouraged to use the extended deadline to rectify any omissions or errors. Proper disclosure ensures eligibility for claiming relief under Schedule TR.
- CBDT issued a circular on December 31, 2024, formalizing this extension under Section 119 of the Income-tax Act, 1961.
