Taxpayers declare over 29,000-cr worth foreign assets

More than 30000 taxpayers have declared foreign assets worth Rs 29208 crore following Incometax departments special Trust First campaign that urged them to report income earned overseas accurately official sources said ThursdayThe department and its administrative body Central Board of Direct Taxes CBDT began sending SMSes and emails on November 17 2024 as part of this campaignA total of 19501 taxpayers with high foreign account balances or significant foreign income from interest or dividends above a specified threshold were contactedThese communications according to the sources requested taxpayers to revise their Income Tax Returns ITRs to reflect their foreign assets and income correctlyOfficial sources told PTI that 24678 taxpayers reviewed their ITRs and 5483 taxpayers filed belated returns for the assessment year 202425 in which they declared foreign assets worth Rs 29208 crore and additional foreign income of Rs 108988 croreA total of 6734 taxpayers also revised their residential status from resident to nonresident they saidThe IT department had adopted the Trust First approach which prioritises voluntary compliance by taxpayers over enforcement or action or sending verification notices they saidThis foreign assets campaign was part of this philosophy which the Union government and finance minister Nirmala Sitharaman have also been underlining during their speeches including during Budget presentation they saidInstead of immediate verification or intrusive actions the tax department has trusted taxpayers first giving them ample opportunity to make true and complete disclosures of their foreign income and assets an official saidAbout 62 per cent of the taxpayers who were nudged as part of this campaign have responded positively voluntarily revising their ITRs to declare foreign assets and income the official saidAccording to official data the number of taxpayers disclosing foreign assets and income on voluntary basis has grown from 60000 in assessment year 202122 to 231452 taxpayers in 202425The IT department and CBDTs idea is that by fostering transparency education and cooperation the initiative reinforces a compliancefriendly tax environment ensuring that taxpayers can correct their filings proactively before any formal verification measures are undertakenThis year due to extensive outreach and awareness efforts voluntary disclosures witnessed a significant 4517 per cent growth compared to assessment year 202324 data saidThe tax department receives data on foreign assets held by Indians abroad through the common reporting standards CRS mechanism as part of which 125 countries share such information with the Indian taxmanA similar exchange occurs with the US under the InterGovernmental Agreement pursuant to the Foreign Accounts Tax Compliance Act FATCALast September India received financial information from over 108 countries regarding foreign accounts and income in the form of interest and dividends earned outside IndiaThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever