Yes, its true, while filing an Income Tax Return for the FY 2024-25, it is now mandatory to disclose all bank accounts held during that year. This includes:
All active bank accounts, whether savings, current, credit card accounts, overdraft accounts or NRO accounts.
Bank accounts opened or closed anytime during the financial year must be disclosed, not just those active as of March 31.
Details Required To Disclose
- Bank name / Bank account number.
- Type of Accounts - Savings, Current, Credit Card, Overdraft or NRO.
- Account Holder Type - Primary or joint
- IFS Code
- Non-residents with no Indian bank accounts can disclose foreign bank accounts.
Note - Nominate one Bank for Refund - Yes or No
What if my account is not operated from last 2 years?
If your account is not operated from past 2 years, you do not have to show the same.
What if banks not shown in ITR?
If you fail to disclose all bank accounts in your ITR say for example you have 5 active banks but disclosed only 1 account then-
It may be considered as incomplete or defective u/s 139(9) and issue notice leading to non-compliance.
The Income Tax Department cross-checks bank account information with Annual Information Statement (AIS), which includes interest income, deposits and transactions etc from all bank accounts linked to your PAN.
If you do not disclose, it may result in mismatch with AIS, raising red flags, scrutiny, and notices.
Penalties For Misreporting
Penalties ranging from 50% to 200% of tax can be imposed if you had income from undisclosed accounts is found.
Even if no income arises in undisclosed accounts, you may face notices or be put under scrutiny for incomplete reporting.
What if other bank accounts have no income?
If say for example 4 out of 5 bank account had no income/ transaction then usually no penalty is applied but return may be marked defective due to non-discloser.
Recommendations
Disclose all bank account opened, closed or operated during the financial year in your ITR. If notice is received for non-disclosure, submit a revised return disclosing all accounts. Proper disclosure avoids delays in refunds and reduces scrutiny and penalties.
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