The Central Board of Direct Taxes (CBDT) on November 20, 2025, issued a notification regarding enhancing tax transparency on foreign assets & income.
The following has been stated:
In today’s interconnected world, tax transparency is crucial. The Common Reporting Standard (CRS) by OECD and the Foreign Account Tax Compliance Act (FATCA) by the U.S. aim to curb tax evasion by enabling global sharing of financial account information. India receives detailed data under these frameworks—including account balances, personal details, and foreign income—which helps identify undisclosed foreign assets of residents.
Under the Income-tax Act, 1961, Indian residents must declare all foreign assets and income in Schedule FA, Schedule FSI, and claim foreign tax relief through Schedule TR. Non-disclosure can lead to heavy penalties under the Black Money Act, 2015.
Transparency offers multiple benefits: better compliance, legal protection, avoidance of double taxation, and contribution to national development. Taxpayers who missed disclosures can file a revised return for A.Y. 2024–25 until January 15, 2025, ensuring accuracy, avoiding penalties, and claiming eligible tax reliefs.
The Income Tax Department’s ongoing e-campaign serves as a reminder for taxpayers to stay compliant, fully disclose foreign income/assets, and use the revised return option to rectify omissions.
Please refer to the document attached below for more details.
