Tax Department Grants Amnesty for Unintentional Foreign Asset Disclosure Failures

In a move to provide relief for unintentional omissions, the Income Tax Department has announced that individuals failing to disclose foreign assets worth up to 20 lakhs can now avoid penalties and prosecution. This new rule, which was amended by the Central Board of Direct Taxes, focuses enforcement efforts on more significant cases of non-disclosure.

The change in policy is intended to ease the burden on taxpayers who may have inadvertently overlooked reporting their foreign assets. However, the relief does not apply to immovable property held abroad. The tax authorities are now prioritizing their efforts on addressing larger instances of undisclosed foreign wealth, rather than penalizing smaller, unintentional oversights.

This latest development is part of the government's ongoing efforts to crack down on black money and improve tax compliance. By providing a more lenient approach for minor infractions, the Income Tax Department hopes to encourage voluntary disclosure and build trust with taxpayers.