No penalty for non-disclosure of foreign ESOPs, pension assets worth up to Rs 20 lakh: Budget 2024

Finance Minister Nirmala Sitharaman's Budget 2024 has announced relief for Indian employees working with multinational companies and deputed abroad for assignments.

They get ESOPs from such companies and often have to open bank accounts and enroll into social security schemes abroad. Now, non-reporting of such financial assets valued at up to Rs 20 lakh will not invite any penalty.

Under the current rules, an inaccurate disclosure or failure to report such foreign assets in income tax returns can result in penalty of up to Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

"Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to Rs 20 lakh is proposed to be de-penalised," Sitharaman said during her Budget speech.