What is Foreign Asset Reporting?

Here is the application process that I used to file my Foreign Assets on the Income Tax return: 

Step 1: First, I have to identify the category of my foreign asset and its code from the menu given below, to fill my ITR. 

Step 2: Then, I provided all the details of my foreign assets, such as address, country code, name, currency code, and zip code.

Step 3: Provided all the details of the investments, like the closing balance, opening balance, and highest balance at the end of the fiscal year in the INR and foreign currency. 

Step 4: Now, you need to submit the details of the income earned in the relevant account period in the INR and foreign currency. These details also include the redemption and sales of assets in a financial year. 

I have filed my foreign assets reports in my ITR because: 

1. Foreign assets reports allow taxpayers to disclose their foreign assets, which helps the Income Tax Department maintain a record of the global assets of residents. It includes stocks, mutual funds, properties, bank accounts, and other financial instruments. 
2. Reporting foreign assets helps to combat black money. It imposes a penalty on the citizens for not reporting their foreign assets. 
3. From the foreign assets reports in the Income Tax Returns, you can get the tax claim under the Double Taxation Avoidance Agreement DTAA on the taxable income you generated.