The taxman knows about your foreign assets and is giving you a chance to revise ITR

livemint.com:

The Income Tax (IT) department is taking a lenient approach this year to address the non-disclosure of foreign assets in income tax returns filed in the current assessment year. This week, the department has sent out emails to taxpayers who have not reported foreign assets, asking them to revise their tax return. 

This approach is different from the usual process where the defaulting taxpayers would be summoned by the tax department for investigation, which sometimes resulted in penalties for those unable to comply.

“This looks like a new initiative from the tax department, wherein instead of directly sending summons of investigation under section 131(1A) of the Income Tax Act,it is giving taxpayers a chance to revise their ITR," said Bhawna Kakkar, a Delhi-based chartered accountant and founder, Kakkar & Company, Chartered Accountants.

An email sent by the IT department to an assessee, reviewed by Mint, said, “As part of ongoing collaborative efforts to ensure compliance with tax regulations, we have received information concerning foreign assets and income, from the USA, such as Bank account, interest, dividends, etc, that may be associated with you. Our records show that Schedule Foreign Assets has not been filled in your return for AY 2024-25…Accuracy in reporting for tax purposes is important. We urge you to review and revise your income tax return to ensure it reflects all relevant information, including any foreign assets or income you may have held or earned during the relevant financial year…"

Also Read: Here's how to accurately declare assets in Schedule AL of your ITR

The IT Act requires residents to report all their foreign assets and income in their ITR under schedule FA. Disclosing ownership of foreign