No relief in Rs 10 lakh tax fine for not disclosing foreign assets

Income tax authorities in Mumbai are issuing show-cause notices to taxpayers for foreign investments not disclosed in tax returns. A recent order by the Mumbai bench of the ITAT upheld a penalty of Rs 10 lakh per year for non-disclosure of foreign assets. However, experts argue that penalties should be commensurate with the offense and not applied when there is enough disclosure elsewhere in the tax return.