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Notice on foreign assets

628 views 2 replies

mayuri

Tax Consultant

297 Points Posted on 18 December 2025

Hello all,

One of my client has worked in netherland last year ( from jan 1st 2024 to june 2025) she did not filed return for asst year 2025-26 as she has paid the tax in netherland.

She got notice from dept to declare foreign assets and file the return.

How to proceed with this case?

Please help it's urgent.

Replies (2)

Quick Summary

A client working in the Netherlands received a notice from the Indian tax department to declare foreign assets and file a return, as they had paid taxes in the Netherlands. The advice given is to file the Indian Income Tax Return for AY 2025-26, declare foreign income and assets in Schedule FA, and claim Foreign Tax Credit (FTC) by filing Form 67. It's also crucial to verify residency status and respond to the department with all necessary documentation.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 18 December 2025

File the Indian Income tax return for AY 2025-26 declaring the foreign income earned in the Netherlands(Jan1 ,2024 to June 2025). The return should be filed under Section 139 of the Income Tax Act.
Declare foreign assets in the schedule FA(Foreign Assets) of the ITR, as required by the department's notice.
Claim foreign tax credit (FTC) for the taxes paid in the Netherlands to avoid double taxation. This is done in Form 67 under Rule 128 of the Income Tax Rules.
Respond to the department notice with the filed return and supporting documents (proof of foreign inocme, tax paid in Netherlands, and Form 67 for FTC.
Check residency status for the relevant period, as it affects the taxability of foreign income in India.