ITR Filing: Certain information is required to be disclosed while filing the return. Some taxpayers are unable to provide certain information by mistake. However, in case of non-disclosure according to the rules of Income Tax, the return of the taxpayer is not considered correct and they can get a notice from the Income Tax Department.
In such a situation, to avoid any such notice regarding ITR, information about assets or holdings from bank accounts to foreign in any way must be given in ITR.
Suppose if your son is a NRI but he is planning to buy a property in his country of residence, is he required to show it here in his Income Tax Return (ITR)?Suppose if your son is a NRI but he is planning to buy a property in his country of residence, is he required to show it here in his Income Tax Return (ITR)?
Under the Indian Income Tax (IT) law, all foreign assets are required to be reported in the ITR if the individual is a “resident and ordinarily resident” (ROR) of India during the financial year. Also, such foreign assets under which have been offered for tax in ITR are required to be shown here in ITR
If taxpayers have held ownership or beneficiary share in any foreign asset for even a day, they will be required to mention the same in the ITR.
If you do not do this, then you may have to pay tax on undisclosed income or property at the rate of about three times i.e. 30 percent along with fine.
Information about these properties has to be given
Foreign assets to be reported include foreign bank accounts, financial interests, immovable property, accounts in which a person has signing authority, trusts, any other capital asset held by a person outside India. Great care should be taken in reporting foreign assets/income in ITR. Any omission or misstatement can invite additional tax, interest and penal consequences under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.