Black Money and Income Tax Return: CBDT has launched a compliance awareness campaign for the assessment year 2024-25 to support taxpayers to accurately fill the Schedule of Foreign Assets (Schedule FA) and report foreign source income (Schedule FSI) in their income tax returns ( ITR). Compliance with Schedules FA and FSI is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Levy of Taxes Act, 2015, which stipulates disclosure of foreign assets and income.

In this initiative, information messages will be sent through SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25. These messages target individuals identified through bilateral and multilateral agreements, indicating potential foreign accounts or assets or income from foreign sources. The objective is to remind and assist those who have neglected to accurately complete the Foreign Assets Schedule.

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“This initiative aligns with Viksit Bharat’s vision and highlights the Income Tax Department’s commitment to use technology to simplify taxpayer compliance and reduce human interaction. By leveraging the data obtained through the Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system CBDT expects all eligible taxpayers to take advantage of this opportunity to fulfill their tax responsibilities and contribute to Economic Development of the nation is not only consistent with the government’s vision for a developed India but also encourages a culture of transparency, accountability and voluntary compliance,” the income tax department said in a notification issued on November 16, 2024.

Key points to remember:

1. CBDT has initiated a compliance and awareness process for assessment year 2024-25 to support taxpayers to accurately complete the Foreign Asset Schedule and disclose foreign source income in their income tax returns.

2. As part of this initiative, information notices will be sent through SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25.

3. These notices are addressed to natural persons identified by data received through bilateral and multilateral agreements, which indicate that they may hold foreign accounts or assets or have earned income from foreign jurisdictions.

4. The purpose is to provide a gentle reminder and support to persons who may have overlooked filling the Foreign Asset Schedule in the ITR filed for AY 2024-25, especially in cases involving significant foreign assets.

5. CBDT anticipates that all eligible taxpayers will take this chance to fulfill their tax obligations and play a role in promoting the country’s economy.

6. This initiative aligns with the government’s objective to promote a culture centered on transparency, accountability and voluntary adherence to tax regulations.