CBDT advises all taxpayers to carefully review their foreign income, assets in ITRs

25 Nov 2024 Evaluate

The Central Board of Direct Taxes (CBDT) has advised all taxpayers to carefully review their foreign income and assets and report them accurately in their Income Tax Returns (ITRs). Income Tax department in its special edition of ‘Samvad’ raised awareness on proper disclosure of foreign assets and income by taxpayers. The session aimed to raise awareness among taxpayers about the need to accurately report their foreign income and assets in their ITR.

Shashi Bhushan Shukla, Commissioner (Investigation), CBDT explained that all Indian residents are required to declare their foreign assets, which can include real estate, bank accounts, shares, debentures, insurance policies, or any other financial assets where they are the beneficial owner. He said that Income Tax Department has provided a detailed step-by-step guide in the ITR form, specifically in the Foreign Assets and Income schedule, where taxpayers can report their foreign income and assets. He emphasised that this rule applies specifically to resident taxpayers, as defined under Section 6 of the Income Tax Act.

Defining the resident taxpayers, Shukla clarified that a resident taxpayer is someone who has lived in India for at least 182 days during the previous year or who has stayed in India for 365 days during the previous four years. Taxpayers who do not meet these criteria are either considered non-residents or not ordinarily residents, and they are not required to declare foreign income and assets. He added that only resident taxpayers need to report their foreign income and assets in their ITR.