Indian Taxpayers Report Foreign Assets of Rs 29,208 Cr and Income of Rs 1,089 Cr
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Synopsis
On March 6, it was reported that 30,161 Indian taxpayers revealed foreign assets totaling Rs 29,208 crores and foreign income of Rs 1,089.88 crore for AY 2024-25, following a campaign by the CBDT aimed at promoting voluntary disclosures.
Key Takeaways
- 30,161 taxpayers declared foreign assets exceeding Rs 29,208 crores.
- Foreign income reported totals Rs 1,089.88 crore.
- Voluntary disclosures increased by 45.17% year-on-year.
- Campaign included outreach to 19,501 high-value taxpayers.
- Overall, 62% of taxpayers updated their filings voluntarily.
New Delhi, March 6 (NationPress) A total of 30,161 Indian nationals have reported foreign assets surpassing Rs 29,208 crores and foreign income amounting to Rs 1,089.88 crore for the Assessment Year (AY) 2024-25, according to official sources from IANS on Thursday.
The Central Board of Direct Taxes (CBDT) initiated a compliance and awareness campaign designed to promote voluntary disclosures of offshore wealth and income.
This initiative, executed by the Income Tax Department, employed a data-driven and non-intrusive methodology, resulting in a remarkable 45.17 percent increase in voluntary disclosures year-on-year for 2024-25 compared to 2023-24.
Out of the 30,161 taxpayers who reported their foreign assets, 5,483 submitted Income Tax Returns (ITRs) after the due date, while others updated their existing filings. Additionally, 6,734 individuals changed their residential status from Resident to Non-Resident, as stated by the sources.
These taxpayers have declared foreign assets valued at Rs 29,208 crore and additional foreign income totaling Rs 1,089.88 crore, according to reports.
The tax authorities obtained financial data from over 108 countries concerning foreign accounts and income, including interest and dividends earned abroad by Indian citizens.
The number of taxpayers voluntarily disclosing foreign assets and income has surged from 60,000 in 2021-22 to 2,31,452 in 2024-25.
India was among the early adopters of Common Reporting Standards (CRS) and has been receiving data since 2018.
More than 125 countries have committed to sharing individual financial information linked to other jurisdictions automatically, including account details, balances, dividends, interest received, and gross payments.
A similar exchange of information occurs with the USA under the Inter-Governmental Agreement related to the Foreign Accounts Tax Compliance Act (FATCA), 2010.
Using the data acquired through the automatic exchange of information, the CBDT launched a Compliance-Cum-Awareness Campaign on 17th November 2024, encouraging taxpayers to declare their foreign assets and income in revised ITRs for AY 2024-25.
This campaign adopted a system-driven and taxpayer-friendly approach, leveraging the information received through CRS and FATCA.
The Income Tax Department (ITD) supported taxpayers by offering a comprehensive guide for completing Schedule Foreign Assets and Schedule Foreign Source Income, along with explanatory resources to clarify the information obtained through these frameworks.
As part of the campaign, SMS and emails were dispatched to 19,501 taxpayers with substantial foreign account balances or significant foreign income from interest or dividends exceeding a certain threshold.
The taxpayers were urged to amend their Income Tax Returns (ITRs) to accurately reflect their foreign assets and income.
Moreover, 30 outreach sessions, seminars, and webinars were held throughout India, directly engaging over 8,500 participants.
Overall, roughly 62 percent of taxpayers responded positively, voluntarily updating their ITRs to declare foreign assets and income.
Fundamentally, this campaign embodies the 'Trust First' philosophy, prioritizing voluntary compliance over enforcement. Rather than resorting to intrusive measures, the Department has placed its trust in taxpayers, providing ample opportunities for them to make accurate and complete disclosures of their foreign income and assets, as highlighted by a senior official.
