The Central Board of Direct Taxes (CBDT) has introduced a special campaign to help taxpayers correctly report their foreign assets and foreign-sourced income in their Income Tax Returns (ITRs) for the Assessment Year (AY) 2024-25. This campaign is called the Compliance-Cum-Awareness Campaign and aims to make sure that taxpayers understand their responsibilities when it comes to declaring assets and income from foreign sources.
Let’s dive into the details of this campaign and what it means for taxpayers.
What Is the Campaign About?
This campaign is designed to assist taxpayers who may not have fully or correctly reported their foreign accounts, assets, or income in their ITRs. It is particularly focused on those individuals identified through international information-sharing agreements.
Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, taxpayers must disclose all their foreign assets and income in their ITR. Non-compliance can result in penalties or legal consequences.
The campaign’s primary aim is to:
- Help taxpayers understand how to complete Schedule Foreign Assets (Schedule FA) and Schedule FSI (Foreign-Sourced Income).
- Encourage those who may have missed reporting these details to correct their submissions.
How Will It Work?
As part of this initiative:
- Informational Messages:
The Income Tax Department will send SMS and email alerts to resident taxpayers who have already filed their ITR for AY 2024-25. These messages will act as reminders for individuals who may need to revisit their tax filings to ensure they’ve reported all foreign assets or income. - Target Audience:
These messages are being sent to taxpayers flagged through information received under bilateral and multilateral agreements. This data-sharing helps identify individuals who:- Hold foreign bank accounts or other foreign assets.
- Have received income from foreign countries.
- Focus on High-Value Assets:
The campaign pays special attention to cases where taxpayers have high-value foreign assets. - Access to Guidance:
To make the process easier, taxpayers can find resources and instructions on completing Schedule FA on the official Income Tax Department website: www.incometax.gov.in.
Why Is This Important?
This campaign is more than just a compliance initiative. It reflects the government’s larger vision of Viksit Bharat (Developed India), which includes building a tax system that is:
- Transparent: Encouraging taxpayers to disclose all their financial details.
- Efficient: Reducing human interaction and relying on automated systems to track data.
- Fair: Ensuring everyone contributes their fair share to the economy.
By using technology and data obtained through the Automatic Exchange of Information (AEOI) system, the government is taking steps to make compliance simpler and more taxpayer-friendly.
What Should Taxpayers Do?
If you receive a message or email from the Income Tax Department under this campaign, here’s what you can do:
- Review Your ITR:
Check whether you have correctly filled out Schedule Foreign Assets in your ITR. Make sure all foreign accounts, assets, and income are properly disclosed. - Make Corrections if Necessary:
If you realize you missed reporting some information, you can revise your ITR to ensure full compliance. - Seek Guidance:
Visit www.incometax.gov.in for step-by-step guides and support.
Benefits of Compliance
By taking this opportunity to update your tax filings, you can:
- Avoid penalties or legal issues for non-compliance.
- Show your support for the nation’s economic development.
- Contribute to a culture of accountability and fairness in India’s tax system.
The CBDT has made it clear that it expects all eligible taxpayers to take this chance to fulfill their responsibilities.
A Step Towards a Better Tax System
This campaign is part of a larger effort by the government to create a tax system where compliance is easy and transparent. The use of technology, combined with international cooperation, ensures that taxpayers are guided and supported in meeting their obligations.
In the long run, these efforts not only boost revenue for the country but also build trust between taxpayers and the government.
Final Words
The Compliance-Cum-Awareness Campaign for AY 2024-25 is a positive step towards creating a more transparent and accountable tax culture. If you’re a taxpayer, take advantage of this initiative to review your filings, correct any mistakes, and contribute to India’s progress.
For more information, visit www.incometax.gov.in today. Let’s work together to build a transparent and developed India!
