Do you need to declare your foreign investments?

The short answer: Yes

Everyone must disclose their foreign assets, as per Black Money and Imposition of Tax Act. This includes NRIs who are back in India, students and employees who have worked abroad.

What if you don’t?

There is a Rs 10 lakh penalty and rigorous imprisonment of six months to seven years.

What if tax authorities detect undisclosed foreign income?

In that case, the tax offender will be slapped with a 30 percent tax and a penalty of three times the tax amount.

Even if you’ve paid tax in the country of investment?

That’s right. The penalty will not consider the fact that you paid tax in another country.

What you should do

Avoid risks. When filing your return, include the details of any foreign income and assets in the ITR form under the section titled 'Schedule FA (Foreign Assets).

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