What are the implications of failing to disclose foreign assets and income according to the Income Tax department
Understanding the penalties for not disclosing foreign assets and income to the Income Tax department.
Failing to disclose foreign assets and income to the Income Tax department can have several serious implications, including:
- Heavy penalties: The individual may be subject to substantial penalties, which can be up to 300% of the tax evaded.
- Prosecution: Non-disclosure of foreign assets can result in a criminal prosecution, leading to imprisonment for up to seven years.
- Seizure of assets: The Tax department can seize the undisclosed foreign assets and income, leading to financial loss for the individual.
- Disqualification from certain tax benefits: The individual may lose eligibility for certain tax benefits and exemptions.
- Damage to reputation: Failing to disclose foreign assets can damage the individual's reputation and credibility.
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5 months ago