Income Tax Return: Missed disclosing foreign assets or income? Check the deadline to revise

If you have failed to correctly disclose your foreign assets and income in your original income tax return (ITR), you can still take a corrective step by revising your return before the last date.

The Income Tax Department allows taxpayers to correct any omissions or inaccuracies by filing a revised return.

How will it help?

According to a document shared by the Income Tax Department, filing a revised return will,

• Ensure complete and accurate disclosure of all foreign assets and income

• Avoid penalties and legal consequences for non-disclosure

• Avail any eligible tax reliefs under the provisions of Indian tax laws and DTAA

Filing a revised return to disclose foreign assets is a proactive step towards maintaining compliance and transparency in your tax affairs.

Why is it important?

According to the Income Tax Department, taxpayers must disclose their foreign assets and income in ITR. The Income-tax Act, 1961 require residents to disclose their foreign assets and income in their Income Tax Returns (ITR).

Schedule FA (Foreign Assets) in the ITR form is meant for reporting foreign assets, and Schedule FSI (Foreign Source Income) is for reporting income from foreign sources.

Schedule FSI is relevant for the taxpayer who is resident in India. In this, taxpayers should disclose details of income that arises from any source outside India.

In Schedule TR, taxpayers can provide summary of tax relief which is being claimed in India for taxes paid outside India in respect of each country.

In Schedule FA, resident Indians are required to furnish details of any foreign asset holdings, including foreign equity and debt interest. Non-residents and 'not ordinarily residents' are not required to fill Schedule FA.

Additionally, taxpayers can also claim tax relief on taxes paid abroad by filing Schedule TR (Tax Relief).