CBDT Launches Compliance Campaign for Accurate Foreign Income Reporting
The Central Board of Direct Taxes (CBDT) in India has initiated a Compliance-Cum-Awareness Campaign for the Assessment Year 2024-25. This campaign aims to help taxpayers accurately fill out the Schedule Foreign Assets (Schedule FA) and report income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR).
Purpose of the Campaign
The campaign aligns with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires full disclosure of foreign income and assets. The CBDT will send informational messages via SMS and email to taxpayers who have already filed their ITR for AY 2024-25. These messages will focus on individuals identified through international data sharing agreements, indicating potential foreign accounts or income.
Focus on High-Value Cases
The campaign particularly targets high-value cases to ensure taxpayers who may have missed reporting their foreign assets are reminded of their obligations. This initiative demonstrates the government’s commitment to using technology to improve tax compliance.
Encouraging Voluntary Compliance
By using data from the Automatic Exchange of Information (AEOI) framework, the Income Tax Department aims to simplify the compliance process, reduce human interaction, and create a taxpayer-friendly environment. The campaign supports the government’s vision of “Viksit Bharat” (Developed India) by promoting transparency and responsible tax practices.
Resources for Taxpayers
Taxpayers can find step-by-step instructions and resources on the official Income Tax Department website at www.incometax.gov.in. The CBDT encourages all eligible taxpayers to ensure accurate reporting and contribute to India’s economic progress.
Doubts Revealed
CBDT -: CBDT stands for the Central Board of Direct Taxes. It is a part of the Indian government that looks after the collection of direct taxes, like income tax, from people and businesses.
Assessment Year -: An Assessment Year is the period of 12 months starting from April 1st to March 31st of the next year, during which the income earned in the previous year is assessed and taxed.
Foreign Income -: Foreign income refers to any money earned by an individual or business from outside India. This could be from a job, business, or investments in another country.
Income Tax Returns -: Income Tax Returns are forms that people fill out to report their income, expenses, and other tax-related information to the government. This helps the government calculate how much tax a person needs to pay.
Black Money Act, 2015 -: The Black Money Act, 2015 is a law in India aimed at curbing black money, which is money that is not reported to the government and is often earned through illegal means. The act requires people to disclose their foreign income and assets to prevent tax evasion.
International Agreements -: International agreements are arrangements between countries to work together on certain issues. In this context, they help India get information about its citizens’ foreign income from other countries.
High-value cases -: High-value cases refer to situations where the amount of foreign income or assets is very large. These cases are given special attention to ensure proper tax compliance.
