Income tax dept's drive leads to rs 29 208 crore foreign assets disclosure

Income tax dept's drive leads to rs 29 208 crore foreign assets disclosure

The nationwide drive by the incometax department to encourage taxpayers to declare foreign assets and income has resulted in taxpayers disclosing foreign assets worth ₹29,208 crore, said people familiar with the matter.

The Central Board of Direct Taxes(CBDT) launched the compliance-cum-awareness campaign in November 2024, leveraging data from more than 125 countries to nudge taxpayers to come clean about their overseas holdings.

The four-month drive resulted in 30,161 taxpayers declaring foreign assets, with 24,678 reviewing their income tax returns (ITRs) and 5,483 filing belated returns, said the people. ‘The campaign yielded significant results, with 24,678 taxpayers reviewing their ITRs and 5,483 taxpayers filing belated returns for AY (assessment year) 2024-25, declaring foreign assets worth 29,208 crore and additional foreign income of ₹1,089.88 crore,’ said one of the persons, who did not wish to be identified.

Besides, 6,734 taxpayers revised their residential status from resident to non-resident, according to the people.

The number of taxpayers disclosing foreign assets and income on a voluntary basis has steadily increased to 231,452 taxpayers in AY 2024-25 from 60,000 in AY 2021-22.

India is among early adopters of Common Reporting Standards.

More than 125 countries have agreed to share financial information of individuals linked to other jurisdictions on an automatic basis, including details of accounts held, account balances, dividends, interest received and gross payments. India is engaged in a similar exchange with the US under the Inter-Governmental Agreement pursuant to the Foreign Accounts Tax Compliance Act, 2010.