Quick Summary
The Income Tax Department has intensified its scrutiny of foreign income and assets held by Indian taxpayers. Notices are being sent to employees of multinational corporations (MNCs) holding Employee Stock Options (ESOPs) from foreign parent companies, especially those who failed to declare dividend
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FAQ :
The Income Tax Department is issuing notices to Indian residents who have failed to declare foreign assets, such as ESOPs, dividends, and property, in their income tax returns.
Taxpayers need to declare foreign depository accounts, equity and debt investments, financial interests in foreign entities, immovable property abroad, capital assets, and roles in foreign trusts.
The Gujarat Chamber of Commerce and Industry (GCCI) has advised taxpayers to revise their income tax returns to include ESOPs and other foreign assets before December 31st.
Failure to disclose foreign assets can lead to severe consequences, including penalties up to ₹10 lakh and prosecution under the Black Money Act. Underreporting income may attract penalties of up to 200% of the evaded tax.
The department is leveraging information-sharing agreements with countries like the USA and UAE to identify ownership details of foreign assets held by Indian residents.
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