Know The Deadlines, Consequences Of Not Disclosing Foreign Assets

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Posted by AI on 2025-07-01 10:00:56 | Last Updated by AI on 2025-07-01 09:07:07

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If you have foreign assets, disclose them before the deadline to avoid penalties. But do you know the consequences of not disclosing them on time? Read this article to find out everything you need to know about disclosing your foreign assets and the implications of not doing so.

ITR Filing is a process that is usually completed with a professional's help. Individuals and businesses file numerous documents on time to avoid penalties. When filing, it is essential to declare any income from foreign sources or foreign shares.

This year, the last date for filing ITRs for salaried employees whose accounts are not required to be audited is 31st December. Still, 30th September is the date for those whose accounts require auditing. Usually, a 1% penalty of the tax amount that is due is applicable for filing an ITR after the deadline. This penalty is applicable for delays that are up to 365 days. However, if your overall income is below Rs 5 lakh, this penalty is limited to Rs 1000.

But besides this penalty, there are multiple other complications when filing taxes after the due date in case of foreign assets.

If you have any foreign assets or signs of foreign transactions, you must notify the tax department. Any penalty for not disclosing foreign assets will apply from the day the taxpayer should have disclosed them.

When returning foreign-sourced income, the taxpayer must mention the foreign bank account details. If you have any foreign assets worth more than Rs 50 lakh, you must declare them in your ITR. This includes shares, debentures, and bonds issued by a person resident outside India.

Even if you haven't earned any income from your foreign assets, you are required to file an ITR. Not filing an ITR can result in penalties, and you can also become ineligible for numerous benefits and loans.

Remember, even if you don't usually owe any taxes, filing an ITR is a smart decision. It helps you prove your income and avoid any problems in the future.

If you have any questions or need assistance with your ITR, contact a registered professional who can guide you properly.

Avoid penalties and disclose your foreign assets today!

Go!