New rules for ITR filing: The Central Board of Direct Taxes (CBDT) has advised taxpayers to review their foreign income and assets before filing ITR. Actually, there was a lot of confusion regarding this matter. To clear this confusion, the Income Tax Department informed taxpayers about the rules for foreign income and assets through a special edition communication.
New rules for ITR filing: CBDT has asked all taxpayers to review their foreign income and assets properly and only after that fill the correct information in ITR.
This advice was given in the special edition ‘Samvad’ of the Income Tax Department. This campaign has been started to make taxpayers aware. According to the campaign, taxpayers should disclose their foreign income and assets in ITR only after carefully reviewing them.
During the session, CBDT Commissioner (Investigation) Shashi Bhushan Shukla said that all Indian citizens must disclose their foreign assets, such as bank accounts, real estate, shares, insurance policies, etc.
New rules for ITR filing: Understanding the Rules for Disclosing Foreign Assets and Income in ITR Forms
He further said that the Income Tax Department has provided a step-by-step guide “Foreign Assets and Income” in the ITR form. With the help of this guide, taxpayers can disclose their foreign income and property. This rule applies specifically to resident taxpayers. Information about this has been given in Section 6 of the Income Tax Act.
Shukla clarified that as per the rules, a resident taxpayer is one who has stayed in India for at least 182 days in the last year or has stayed in India for 365 days in the last 4 years. If the taxpayer does not fulfil these criteria, he will be considered a non-resident. Non-residents are not required to declare their foreign income and property.
New rules for ITR filing: Who needs to declare foreign property and income in India? Shukla explains the rules for taxpayers
Many times taxpayers who do not have any foreign income or property, still give details of the same in ITR. Clearing this confusion, Shukla clarified which taxpayers are required to give details of their foreign property and income. He also told that if a taxpayer has bought property abroad and is not earning any income from it, still he will have to give details of that property in ITR.
If an NRI comes to India and takes Indian citizenship, he too will have to give details of his foreign property and income. This rule also applies to those foreign citizens who become citizens of India.
