Clarifications on Tax Compliance for Undisclosed Foreign Income and Assets

Undisclosed foreign assets compliance: declaration and valuation rules determine reporting, deductions, immunity and penalties.

Circular clarifies Chapter VI compliance: declarations may be filed by beneficial owners, trustees, firms and individuals for undisclosed foreign assets acquired from income chargeable to tax in India; immunity applies only to declared assets with tax and penalty paid. Valuation follows the Rules: bank accounts, securities and brokerage holdings are valued separately; deductions exclude income not chargeable to tax in India and transfers used to acquire separately declared assets reduce account value. Declarants must provide computations, retain supporting valuation evidence, report assets in Schedule FA, and may face penalties for non-declaration.