The Income Tax Department has warned about 25,000 taxpayers to review and revise AY 2025-26 returns for foreign assets and income by December 31, 2025. Non-reporting can lead to a 10 lakh fine and up to 300% penalty. Last year’s drive led to major disclosures. Act now to stay compliant.

The Income Tax Department is sending alerts to people who may have foreign bank accounts, investments or property that are not shown in their Income Tax Return. If you get this message, you must check and revise your ITR before 31 December 2025 to avoid big tax and penalties under the Black Money Act.

This blog details the recent changes by the CBDT in relaxing certain "black money" rules, aiming to provide significant relief to Indian taxpayers. It explains the rationale behind these changes, focusing on the rationalization of penalties, re-evaluation of "undisclosed" status, new opportunities for compliance, and a reduction in harassment and litigation. The article highlights who benefits from these relaxations, positions them within a broader shift towards trust-based taxation, and advises taxpayers on necessary steps to take.

The CBDT has issued Instruction No. 01/2025 on 18 August 2025, aligning its policy with the Finance (No. 2) Act, 2024. This update ensures that prosecution under Sections 49 and 50 of the Black Money Act will not be initiated for undisclosed non-immovable foreign assets valued up to ₹20 lakh. The move offers relief to genuine taxpayers, prevents harsh action for minor errors, and focuses enforcement on serious non-compliance cases.

This blog post alerts Indian taxpayers about the important need to report foreign Employee Stock Option Plans (ESOPs) in their Income Tax Returns. It describes what foreign ESOPs are and explains why disclosing them is required under laws like the "Black Money Act." Failing to comply can lead to a large penalty of 10,00,000 and possible jail time. The post also offers straightforward instructions on how and where to report these assets in ITR-2 or ITR-3, urging taxpayers to act quickly and recommending myITROnline for expert help.

This comprehensive guide explains foreign bank account and asset disclosure requirements for Indian resident taxpayers in Assessment Year (AY) 2024-25. It covers what to disclose, deadlines, penalties, and how to report in Schedule FA.