As many as 30,000 taxpayers revised their income tax returns or have filed belated returns and have also declared foreign assets and income of more than Rs 30,000 crore, according to a PTI report which cited government sources privy to the matter.
The Central Board of Direct Taxes (CBDT) said that the high number of returns have been filed in line with the department’s 'trust-first' approach. Earlier on November 16, 2024, the CBDT launched an awareness campaign as a part of its 'trust-first' approach. Under the campaign, the department sent messages which urged taxpayers to disclose high-value foreign income or assets in their income tax returns for Assessment Year 2024-25.
The messages were sent via SMS and email to as many as 19,501 taxpayers who had foreign account balances or had earned significant foreign income from interest or dividends above a specified threshold.
The report cited sources who claimed that 24,678 taxpayers reviewed their Income Tax Returns and 5,483 taxpayers filed belated returns for AY 2024-25 to declare foreign assets worth Rs 29,208 crore and an additional foreign income of Rs 1,089.88 crore. Additionally, as many as 6,734 taxpayers have revised their residential status from Resident to Non-Resident.
The report said that about 62 per cent of the taxpayers who were sent messages by the CBDT responded positively and voluntarily revised their ITRs to declare foreign assets and income. Notably, the total number of taxpayers who have disclosed foreign assets and income on a voluntary basis grew from 60,000 in AY 2021-22 to 2,31,452 taxpayers in AY 2024-25. The report added that the extensive outreach and awareness efforts by the CBDT coupled with voluntary disclosures contributed to the 45.17 per cent growth seen in AY 2024-25.
Earlier in February, Finance Minister Nirmala Sitharaman said in her Budget speech that the time limit for filing an updated return will be extended from the existing 24 months to 48 months from the end of the relevant assessment year. Sitharaman added that the move is expected to increase voluntary tax compliance. Following the announcement the time limit will be extended from the current two years to four years. Notably these amendments will take effect from April 1, 2025.
