Many NRIs worry about a ₹10 lakh penalty for not disclosing overseas assets. Experts clarify this penalty applies only to Resident and Ordinarily Residents (RORs) who must report all foreign assets in Schedule FA of their ITR, even if those assets earn no income. NRIs and RNORs (Resident but Not Ordinarily Residents) are not required to disclose such details.
The penalty under the Black Money Act targets wilful concealment, not genuine mistakes or unawareness. Tax expert Dinkar Sharma explains that if the issue stems from error or reliance on professional advice, authorities usually don’t impose penalties.
Taxpayers can rectify missed disclosures by filing an updated return (ITR-U) and paying any dues. Voluntary correction with clear documentation significantly reduces risk.
In short, missed disclosure needs attention, not fear transparency and timely action are the best approach.
