The Central Board of Direct Taxes (CBDT) has introduced a new Compliance-Cum-Awareness Campaign for the Assessment Year (AY) 2024-25. This campaign is aimed at helping taxpayers accurately report foreign assets and income in their Income Tax Returns (ITR), particularly in the sections of Schedule Foreign Assets (Schedule FA) and Schedule Foreign Source Income (Schedule FSI).
This initiative is in line with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires full disclosure of any foreign income and assets. The Ministry of Finance emphasized that this effort is part of a larger strategy to increase transparency in financial reporting.
As a part of the campaign, the CBDT will send informative messages via SMS and email to resident taxpayers who have already submitted their ITRs for AY 2024-25. These messages will be directed towards individuals identified through data obtained from bilateral and multilateral agreements, suggesting possible ownership of foreign assets or income from international sources.
The campaign's primary focus is on high-value cases, encouraging those who might have missed reporting foreign assets to update their information. This effort reflects the government's dedication to using technology to improve tax compliance. The Income Tax Department is utilizing data from the Automatic Exchange of Information (AEOI) system to simplify the compliance process, minimize human interaction, and create a more taxpayer-friendly environment.
The objective is to make reporting requirements easier, motivating voluntary compliance and building a trust-based relationship between taxpayers and the government.
The campaign is also part of the broader goal of "Viksit Bharat" (Developed India), supporting transparency, accountability, and ethical tax practices. By promoting voluntary compliance, the campaign aims to reinforce the country’s economic stability and meet long-term fiscal objectives.
Taxpayers can access step-by-step instructions and other resources on how to complete Schedule FA on the official Income Tax Department website, www.incometax.gov.in. The CBDT encourages all eligible taxpayers to utilize this guidance for accurate reporting, contributing to India's economic development.
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