Indian investors in foreign stocks must disclose assets and income from overseas in their tax returns, according to Dr. Suresh Surana, founder of RSM India.
Failure to make these disclosures can result in penalties and potential prosecution for willful tax evasion.
The disclosure requirements are outlined in Schedule FA of the income tax return, and the penalties for non-compliance include a fine of Rs. 10 lakhs. Dr. Surana emphasizes the importance of accurate reporting to avoid legal consequences.