The last date for filing income tax return for the current financial year 2023-24 is near. It is very important for all the people coming in the tax slab to file ITR before 31st July. There is currently no hope of moving ahead of this deadline. In case of not filing ITR before the last date, you may have to pay a heavy penalty. At the same time, in some cases, the fine amount can also be up to Rs 10 lakh.
Let us tell you that the Income Tax Department has made a tweet alerting all taxpayers. It has been said that taxpayers who have any income source or account in any other country, they are required to fill the foreign asset schedule while filing ITR.
Will be fined up to Rs 10 lakh
While filing ITR, you have to tell about all your income sources. Many people have many other sources of income apart from the job. At the same time, some people earn a lot of money through any job or business abroad. The Income Tax Department has said that it is necessary for such people to file ITR. If you earn money abroad in any way and hide that income while filing ITR, then income tax catches your tax evasion. For which you can be fined up to Rs 10 lakh.
It is necessary to fill foreign asset schedule
Income Tax Department has alerted all taxpayers by tweeting. The department has said that those taxpayers who have an account or income source in any other country must fill the foreign asset schedule while filing ITR for assessment year 2023-24. It is also necessary for taxpayers to tell that they should give all the information related to their foreign income and assets in such cases.
This is how people earning from abroad can save tax
According to the rules of income tax, if a person stays in India for 182 days in a financial year, then he is considered a resident. Resident Indian’s global income comes under the purview of tax. Therefore, while filing ITR, the salary received abroad has to be shown under the income from salary head.
For this, you have to convert the salary received in foreign currency into rupees and give the details of the employer. If any kind of tax has already been deducted on your salary, then you can claim tax credit by showing it in the return. To avoid double tax, you can take advantage of Double Taxation Avoidance Agreement.