Government may make declaring of overseas assets details mandatory by taxpayers

The government may make it mandatory for all taxpayers to provide details of their overseas assets, including bank accounts, while filing their annual tax returns, as the drive against tax evasion gains momentum. The proposed Direct Tax Code, or DTC, has a provision that seeks to cast an obligation on taxpayers to furnish full details of foreign assets. The government is now considering a proposal to amend the Income Tax Act to incorporate this provision as the DTC may not come into effect from April 1 2012, as originally planned, an official with knowledge of the matter said. The official, who declined to be named, said tax authorities are seeking legislative changes to ensure taxpayers declare foreign assets.

Source: Economic Times