CA Umesh Sharma
Quick Summary
Overview CBDT has introduced a major transparency measure by directing foreign financial information received from over 100 countries to be reflected in taxpayers' Annual Information Statements (AIS). Foreign bank accounts, overseas shareholdings, ESOPs, dividends, interest income and capital gains
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The CBDT has directed that foreign financial information received from over 100 countries, including details of bank accounts, shares, interest, and dividends, will now be uploaded into taxpayers' Annual Information Statements (AIS).
Your AIS will now reflect foreign bank accounts, overseas shareholdings, ESOPs, dividends, interest income, and capital gains from your foreign investments and accounts.
No, an entry in AIS does not automatically mean tax is payable. You need to examine your residential status, whether it's an asset or income, if the income was already offered to tax, and if you can claim Foreign Tax Credit (FTC).
Taxpayers must check their AIS before filing their ITR, compulsorily report foreign assets in Schedule FA, select the correct ITR form (ITR-2 or ITR-3), and correct any past omissions using the Updated Return (ITR-U).
Non-reporting of foreign assets can attract a penalty of ₹10 lakh per year under the Black Money Act, in addition to potential tax liabilities and prosecution.
No, taxpayers with foreign assets or income cannot file ITR-1 or ITR-4. They must file ITR-2 or ITR-3, depending on their specific circumstances.
CAclubindia
