Disclose your foreign assets and income in ITR or pay a hefty penalty

Clarity on relevant accounting period has been provided this year: it is January 1 to December 31, 2021

Resident Indians holding foreign stocks and bonds must mandatorily disclose their holdings in their income-tax returns (ITR). They must report their interest in a foreign entity held at any time during the relevant accounting period if they are either the beneficial owner or the beneficiary.

Archit Gupta, chief executive officer (CEO), Clear says, “The details must be furnished in Schedule FA of the ITR form by taxpayers having Resident but Ordinarily Resident (ROR) status.”

The rules clearly define the terms beneficial to the owner and the beneficiary. Maneet Pal Singh, partner, I.P. Pasricha & Co says, “A beneficial owner means