look news india
A very important update has emerged for taxpayers filing Income Tax Returns (ITR). If you have opened a bank account, invested or held any other property abroad, the mistake of hiding your information may cost you dearly. The Income Tax Department has implemented a new system to directly display details of foreign assets and accounts in the ‘Annual Information Statement’ (AIS). This step has been taken with the aim of curbing tax evasion and strengthening tax transparency.
What is the new AIS system and how will it work?
Till now many taxpayers used to miss filling the information related to foreign accounts in the ITR form, due to which they had to face notices later. Now the Income Tax Department has started receiving data from tax authorities of various countries around the world under ‘Automated Data Sharing’ agreements. All this data will now be reflected in your AIS. When you sit down to file your ITR, you will already know what data of your foreign financial transactions is available with the department. With this, the scope for giving wrong information has almost been eliminated.
These people will have to be most cautious
People who have opened a bank account abroad, purchased shares in a foreign company, or have any immovable property abroad will now have to fill the ‘Foreign Asset’ (FA) schedule in their ITR very carefully. If information about foreign assets is visible in your AIS and you do not disclose it in ITR, then it may directly come under the ambit of tax evasion. Under the Black Money Act, there is a provision of heavy fine and legal action for such lapses, hence the only option is to give details of your foreign income and assets honestly.
Keep these things in mind before filing returns
Experts recommend that you check your AIS and TIS (Taxpayer Information Summary) thoroughly before submitting ITR. If any foreign asset is visible in your AIS which is not yours or there is any discrepancy in it, then definitely submit your feedback on the Income Tax Department portal in time. This transparency can prevent any legal troubles for you in the future. Remember, in the digital age, the department has an eye on every global transaction, so it is wise to file returns on time with correct information.