Tax law requires you to report income, assets abroad: What you must do

Not reporting foreign assets and income may also result in penalty and even jail sentence

Indian law mandates resident individuals who hold specified foreign assets (FAs) during the relevant accounting period to file an income tax return (ITR). They must disclose all their foreign assets and incomes therein. Failure to do so can lead to a heavy penalty or even imprisonment.

“The Income-Tax (I-T) Department can issue a notice for up to 17 years if you underreport or fail to report your foreign assets or income,” says Ankit Jain, partner, Ved Jain & Associates.
 

Who must report?
 

Individuals and Hindu Undivided Families (HUFs) classified as resident and ordinarily resident (RoRs) must report their foreign incomes,