The income tax department has detected unreported foreign assets valued at approximately Rs 100 crore held by around 60 individuals in the Nagpur region. These assets largely comprise shares in European companies and bank deposits in Europe and the United States.
Disclosure Requirements and Penalties
Indian citizens are legally required to disclose their investments in foreign assets in their income tax returns. Failure to do so attracts hefty penalties, the amount of which depends on the type of asset and its value.
Awareness Campaigns and Detection Methods
The income tax department has been conducting a series of awareness campaigns in collaboration with various business organizations, urging taxpayers to declare their foreign assets in their returns. Detection of undisclosed assets is also facilitated through reporting systems of foreign tax authorities, which reflect investments made by Indian citizens, according to sources.
Immunity Scheme Announced
Finance Minister Nirmala Sitharaman has announced an immunity scheme for non-disclosure of foreign assets with an aggregate value of up to Rs 20 lakh. Sources indicate that such cases will be resolved once the details of the scheme are released.
