ITR filing: These 8 must-do disclosures can make or break your return this year
Equally stringent rules apply to Schedule FSI, which requires detailed country-wise reporting of foreign-sourced income, including amounts and taxes paid.
- Sep 1, 2025,
- Updated Sep 1, 2025 11:51 AM IST
Miss a single disclosure in your Income Tax Return and it could be marked defective, potentially triggering penalties up to ₹10 lakh or even jail time.
Sujit Bangar, founder of tax advisory platform TaxBuddy.com, flagged a crucial warning for taxpayers in a LinkedIn post, emphasizing the high stakes of non-disclosure in ITR filings—especially regarding foreign assets and income.
“Miss one disclosure in your ITR. Your return might get defective,” Bangar cautioned. He highlighted that taxpayers who fail to report foreign assets—such as overseas bank accounts, securities, insurance policies, or even signatory rights—risk penalties of ₹10 lakh and imprisonment ranging from six months to seven years.
These penalties are waived only if the aggregate value of foreign assets, excluding immovable property, is below ₹20 lakh.
Equally stringent rules apply to Schedule FSI, which requires detailed country-wise reporting of foreign-sourced income, including amounts and taxes paid.
Bangar outlined eight critical ITR disclosures that must not be overlooked. Among them is Schedule VDA, which mandates detailed reporting for every crypto or NFT transaction—including acquisition and sale dates, value, and cost. Notably, losses under this schedule cannot be set off.
Other mandatory sections include:
- Unlisted equity shares: Full transactional data is required if shares were held at any point.
- Directorships: Disclosure of DIN, company PAN, and shareholding status.
- Schedule AL: Individuals with income over ₹1 crore must report assets like property, jewelry, stocks, and liabilities.
- Schedule IF: Partners in firms must align disclosures with the firm’s own ITR-5 filings.
- Bank details and verification: Refund accounts must be pre-validated and returns e-verified within 30 days to be accepted.
“Missing or incorrect disclosures might render your return defective under Section 139(9),” Bangar warned, urging taxpayers to double-check entries and maintain cross-schedule consistency.
Miss a single disclosure in your Income Tax Return and it could be marked defective, potentially triggering penalties up to ₹10 lakh or even jail time.
Sujit Bangar, founder of tax advisory platform TaxBuddy.com, flagged a crucial warning for taxpayers in a LinkedIn post, emphasizing the high stakes of non-disclosure in ITR filings—especially regarding foreign assets and income.
“Miss one disclosure in your ITR. Your return might get defective,” Bangar cautioned. He highlighted that taxpayers who fail to report foreign assets—such as overseas bank accounts, securities, insurance policies, or even signatory rights—risk penalties of ₹10 lakh and imprisonment ranging from six months to seven years.
These penalties are waived only if the aggregate value of foreign assets, excluding immovable property, is below ₹20 lakh.
Equally stringent rules apply to Schedule FSI, which requires detailed country-wise reporting of foreign-sourced income, including amounts and taxes paid.
Bangar outlined eight critical ITR disclosures that must not be overlooked. Among them is Schedule VDA, which mandates detailed reporting for every crypto or NFT transaction—including acquisition and sale dates, value, and cost. Notably, losses under this schedule cannot be set off.
Other mandatory sections include:
- Unlisted equity shares: Full transactional data is required if shares were held at any point.
- Directorships: Disclosure of DIN, company PAN, and shareholding status.
- Schedule AL: Individuals with income over ₹1 crore must report assets like property, jewelry, stocks, and liabilities.
- Schedule IF: Partners in firms must align disclosures with the firm’s own ITR-5 filings.
- Bank details and verification: Refund accounts must be pre-validated and returns e-verified within 30 days to be accepted.
“Missing or incorrect disclosures might render your return defective under Section 139(9),” Bangar warned, urging taxpayers to double-check entries and maintain cross-schedule consistency.