Income Tax Department / The strictness of income tax worked, people started giving information about foreign money

Income Tax Department: The strict monitoring of the Income Tax Department and the use of technology-based tools have brought about a major change in the tax system. According to the latest data from the Finance Ministry, an unprecedented increase of 45.17% has been registered in the declaration of foreign income and assets in the assessment year 2024-25. This year 2.31 lakh taxpayers submitted details of their foreign assets and income, while last year this figure was 1.59 lakh.

During this period, 24,678 taxpayers revised their Income Tax Returns (ITR) and 5,483 people filed late returns. These disclosures disclosed a total of Rs 29,208 crore of foreign assets and additional foreign income of Rs 1,089.88 crore — which is being considered a major success of the government's tax transparency policy.

Data matching and global collaboration became a masterstroke

An important trick behind these results was the use of automatic data matching and international cooperation framework. India collected financial information from more than 108 countries under FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard). Based on this, 19,501 taxpayers were notified by SMS and email to update their information.

Additionally, the department organized 30 awareness sessions in 2024, in which more than 8,500 people were informed about the rules and obligations of declaring foreign assets.

Strict warning on non-compliance

The Finance Ministry has clarified that taxpayers no longer need to be in any confusion. If a person hides information about foreign assets or income, then under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015, he can be fined up to ₹ 10 lakh or jailed. However, the department has also kept the option of 'voluntary disclosure' open, so that taxpayers can get relief by voluntarily disclosing assets before investigation.

Data-Driven Enforcement and Digital Surveillance

Under the Income Tax Bill 2025, monitoring of social media activities, email communications and bank account transactions is also being further strengthened. However, the government has also clarified that this monitoring will be done within privacy and legal limits.

Foundation of changing tax culture

Tax experts believe that this data-based approach and international tracking strategy is not only curbing tax evasion, but is also taking India closer to global tax transparency standards. Increasing awareness among taxpayers and clear policy of the government have together laid the foundation of a tax culture where both responsibility and transparency are being promoted.