Why Foreign Assets Complicate ITR Filing
Owning a bank account in Dubai, shares in the US, or a flat in London? For FY 2024-25 (assessment year 2025-26), you must report these in ITR-2’s Foreign Assets (FA) schedule – even if they earn nothing. Non-disclosure risks ₹10 lakh fines under the Black Money Act. Filing ITR-2 correctly is critical but tricky, with pitfalls that can delay refunds or trigger scrutiny. Credfill’s experts have helped clients in Patna and beyond navigate this maze. Here are the top mistakes to avoid when reporting foreign assets in 2025 and how we keep you compliant.
Mistake 1: Skipping the FA Schedule
The FA schedule in ITR-2 is mandatory for foreign assets – bank accounts, shares, properties, or trusts. Even a dormant $100 US account must be reported. A Patna expat we helped forgot his UK savings account; scrutiny cost him ₹50,000 in legal fees. Credfill ensures every asset is disclosed, from balances to ownership details.
Mistake 2: Incorrect Asset Details
You must report specifics: account numbers, peak balances, or property values. Vague entries or estimates invite notices. A Nagpur client underreported his US stock value by $5,000 – his refund stalled for months. Credfill verifies your documents (bank statements, share certificates) to file accurately.
Mistake 3: Missing Income from Assets
Foreign income – dividends, rent, or interest – must be reported, even if tax-free under a treaty. A Bihar professional missed $2,000 in US dividends; penalties followed. Credfill syncs your income with Form 26AS and ITR-2, claiming treaty benefits to cut tax.
Mistake 4: Not Filing on Time
The July 31, 2025, deadline applies to ITR-2. Late filing means ₹5,000 penalties and no loss carry-forward. A client with foreign shares filed late, losing ₹1 lakh in offsets. Credfill files in 2-3 days, beating the rush for faster refunds (2 months vs. 4).
How to Get It Right
- Gather records: Bank statements, property deeds, or demat reports.
- Use Form 26AS: Match TDS on foreign income.
- Verify promptly: Aadhaar OTP or ITR-V within 30 days.
- File early: Avoid portal crashes and delays.
Credfill’s team checks every detail, ensuring compliance and maximizing refunds. A Patna client saved ₹2 lakh by reporting his Dubai flat correctly with us.
Why Credfill?
Foreign assets make ITR-2 complex, but Credfill simplifies it. We handle FA schedules, verify data, and file fast. Start your 2025 filing today – upload your docs, and we’ll keep you penalty-free with Credfill’s expertise.
Need help filing your ITR and claiming your refund for FY 2024–25? Chat with us now on WhatsApp and get started instantly! Alternatively you can book our ITR filing services by visiting our website.
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