Due Date Alert: Last Opportunity to Disclose Foreign Assets Without Penalty
If you are someone who has failed to report their foreign assets or income in your income tax return for the financial year 2024-25, it is your last chance to correct the mistake. December 31, 2025, i.e., today, is the last day to file the revised return for the FY 2024-25 (Assessment Year 2025-26), where you can report any foreign assets or investments that you had not disclosed earlier.
Many taxpayers are not aware that not disclosing the foreign assets or income on the return can lead to heavy penalties and also imprisonment in many cases.
What are Foreign Assets?
The foreign assets include:
- Bank accounts held in foreign countries
- Foreign shares, mutual funds, or bonds
- Foreign property or real estate
- Foreign insurance policies
- Any other financial interest outside India.
Why Disclosure of Foreign Assets and Income is Important?
The Black Money Act, 2015, outlines mandatory requirements to disclose all foreign assets and income in the income tax return. If you are a Resident and Ordinary Resident (ROR) in India, you are required to disclose all foreign assets in Schedule FA of your ITR, even if there is no income earned from them, to avoid penalties.
Last Date for Disclosing Foreign Assets
The last date to declare foreign assets for the Financial Year 2024-25 (AY 2025-26) is December 31, 2025, which is today. Therefore, if you have incorrectly disclosed your foreign income or did not declare it at all, you have the last opportunity to file a revised or belated return by 31 December 2025.
Penalty for Non-Disclosure of Foreign Assets
If you fail to disclose the foreign assets, it can attract a heavy penalty of Rs 10 lakhs and Prosecution in serious cases under the Black Money Act.
