Unique Campaign Leads to Declaration of Foreign Assets and Income Worth Rs 30,300 Crore: FM Sitharaman
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Synopsis
On March 26, Union Finance Minister Nirmala Sitharaman revealed that a targeted campaign by the Income Tax Department resulted in the declaration of foreign assets and income totaling Rs 30,300 crore. This came after over 30,000 taxpayers revised their income tax returns for the financial year 2024-25.
Key Takeaways
- Rs 30,300 crore declared in foreign assets and income.
- Over 30,000 taxpayers revised their income tax returns.
- 11,162 taxpayers amended their tax returns.
- Compliance campaign resulted in a 45.17% increase in disclosures.
- Data received from 108 countries regarding foreign accounts.
New Delhi, March 26 (NationPress) Union Finance Minister Nirmala Sitharaman announced that a unique initiative by the Income Tax Department has led to the declaration of foreign assets and income amounting to Rs 30,300 crore after more than 30,000 taxpayers revised their income tax returns or submitted belated returns for 2024-25.
The Finance Minister stated in the Lok Sabha that SMS messages and e-mails were dispatched to around 19,501 taxpayers, prompting them to reassess their income tax returns based on information gathered by the Income Tax Department concerning foreign deposits.
She mentioned that the “nudge campaign” led to 11,162 taxpayers modifying their tax returns and submitting the Schedule for Foreign Assets Form, which revealed total assets of Rs 11,259.29 crore and foreign income of Rs 154.42 crore. Additionally, 883 taxpayers amended their ITRs, changing their status from resident to non-resident in the updated return for 2024-25.
Another 13,516 taxpayers declared foreign assets of Rs 7,564 crore and foreign income close to Rs 353 crore in their revised ITR for 2024-25.
The Income Tax Department initiated a compliance and awareness campaign, designed to promote voluntary disclosures of offshore wealth and income. This drive concentrated on a data-driven and non-intrusive method, resulting in a 45.17 percent year-on-year increase in voluntary disclosures in 2024-25 compared to 2023-24.
As per sources, tax authorities obtained financial data from over 108 countries regarding foreign accounts and income in the form of interest and dividends earned abroad by Indian citizens.
The number of taxpayers voluntarily disclosing foreign assets and income surged from 60,000 in 2021-22 to 2,31,452 taxpayers in 2024-25.
India is among the early adopters of Common Reporting Standards (CRS) and has been receiving data since 2018.
Over 125 countries have consented to share individuals' financial information tied to other jurisdictions on an automatic basis, including account details, balances, dividends, interest received, and gross payments.
A similar exchange operates with the US under the Inter-Governmental Agreement as part of the Foreign Accounts Tax Compliance Act (FATCA), 2010.
Utilizing data acquired through the automatic exchange of information, the Central Board of Direct Taxes (CBDT) initiated a Compliance-Cum-Awareness Campaign on November 17, 2024, encouraging taxpayers to declare their foreign assets and income in revised Income Tax Returns (ITRs) for the Assessment Year (AY) 2024-25.
This campaign adopted a system-driven and taxpayer-friendly approach, leveraging information received via CRS and FATCA.
The Income Tax Department also assisted taxpayers by providing a detailed guide to filling out the Schedule for Foreign Assets and Schedule for Foreign Source Income, alongside explanatory materials to help them comprehend the information obtained under these frameworks.
