Black Money and Income tax return: The CBDT has launched a Compliance-Cum-Awareness Campaign for Assessment Year 2024-25 to support taxpayers in accurately completing Schedule Foreign Assets (Schedule FA) and reporting income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR). Compliance with Schedule FA and FSI is compulsory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which stipulates the disclosure of foreign assets and income.

In this initiative, informational messages will be sent via SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25. These messages target individuals identified through bilateral and multilateral agreements, indicating potential foreign accounts or assets, or foreign-sourced income. The objective is to remind and assist those who may have overlooked completing Schedule Foreign Assets accurately.

"This initiative aligns with the vision of Viksit Bharat and highlights the Income Tax Department’s commitment to using technology to simplify taxpayer compliance and reduce human interaction. By leveraging data obtained through the Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system. The CBDT expects all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation’s economic development. This effort not only is in line with the government’s vision for a developed India but also fosters a culture of transparency, accountability, and voluntary compliance," the Income Tax department said in a notification issued on November 16, 2024.

Key points to note:

1. The CBDT has initiated a Compliance and Awareness Drive for the Assessment Year 2024-25 to support taxpayers in accurately filling out Schedule Foreign Assets and disclosing income from foreign sources in their Income Tax Returns.

2. As part of this initiative, informative notifications will be sent via SMS and email to resident taxpayers who have already filed their ITR for AY 2024-25.

3. These notifications are targeted towards individuals identified through data received via bilateral and multilateral agreements, indicating that they may possess foreign accounts or assets, or have earned income from foreign jurisdictions.

4. The aim is to provide a gentle reminder and support for individuals who may have overlooked filling out Schedule Foreign Assets in their filed ITR for AY 2024-25, particularly in instances containing significant foreign assets.

5. The CBDT anticipates that all qualifying taxpayers will seize this chance to meet their tax obligations and play a role in the advancement of the country's economy.

6. This initiative aligns with the government's goal of promoting a culture centered on transparency, accountability, and voluntary adherence to tax regulations.