2012-13 Assessment Year: IncomeTaxpayers have to Declare Foreign Properties


Tightening the norms,income tax (IT) department has introduced a new column seeking details of foreign assets in the Income Tax return (ITR) forms for the 2012-13 assessment year.(For the financial year 2011-12)

Taxpayers, who hold foreign properties or foreign bank accounts, will now have to furnish details of their foreign assets which include information like country name, place of property, address of the bank, name mentioned in the account and peak balance during the year.

One of the commissioner in Chennai Income Tax office said,  “Any individual being a resident having assets including financial interest in any entity located in other country  or is a signing authority in any account located outside India shall furnish the return electronically,“

For example, a salaried person having any form of foreign assets including shares or bond of foreign company is required to fill  ITR 2 instead of ITR 1.
Also, details of overseas immovable property and any other asset outside India have to be disclosed.

Furnishing of return by such a resident (with assets abroad) would be mandatory irrespective of the fact whether the resident taxpayer has taxable income or not. It was mention in union budget 2012-13. The proposal is effective from April 1, 2012
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