New Delhi, June 23 -- Taxpayers who qualify as residents for the purpose of income tax in India are required to disclose their foreign income and assets while filing their income tax return (ITR) every financial year. The disclosure is made through Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income).

If a taxpayer fails to accurately report such information, then they can face serious consequences. Non-disclosure of such income and assets can lead to a penalty of Rs.10 lakhs, highlighting the seriousness of the tax department in dealing with such transactions.

As per the income tax law, Indian residents qualified as 'Resident and Ordinarily Resident' must disclose their foreign assets and income in their tax return.

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