Non-disclosure of foreign assets lands many in the nets of the Income Tax Department
Updated: 25 May 2022, 11:43 AM IST
TL;DR.Summons related to the remittance of money transferred from a family member who has exhausted the individual LRS limit for the year. The IT department concludes that if such fund transfers are not established as a 'gift' to the family member, it could be construed as 'borrowing' - and therefore a violation. This is because LRS investments are disallowed with borrowed money.
The Income Tax Department has sent out summons to many people who failed to declare their foreign assets despite having paid their taxes.