Money

When a reporting lapse can turn honest taxpayers into ‘black money’ accused

December 21, 2025

Mint Money When a reporting lapse can turn honest taxpayers into ‘black money’ accused Shipra Singh 8 min read 21 Dec 2025, 05:08 pm IST All foreign assets must be reported annually in the FA Schedule of ITR-2 or ITR-3—even if they generate no income. Some recent cases signal heightened scrutiny of foreign asset disclosures. (REUTERS) Summary Taxpayers face severe penalties for failing to disclose foreign assets, even inadvertently.

Credit: Livemint

Key Highlights

A Mumbai executive received a ₹40 lakh fine under the Black Money Act despite no income from his holdings.
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Subscribe now Even a small, inadvertent oversight in declaring foreign assets can trigger intense scrutiny and label honest taxpayers as holders of ‘black money’, causing financial and mental stress.
A Mumbai-based professional learned this the hard way after receiving a penalty order from the tax department, which accused him of concealing foreign assets and imposed a ₹40 lakh penalty under the Black Money Act (BMA).

Sources

When a reporting lapse can turn honest taxpayers into ‘black money’ accused

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