An employee was slapped with a Rs 10 lakh penalty for failing to disclose foreign ESOPs in his ITR. But the ITAT Chennai set aside the order, holding the omission was accidental and bona fide, especially since it was the first year the reporting requirement applied. The case highlights how intent and reporting context can swing tax penalties.
India’s new Income Tax Return forms have removed ITR-1 and ITR-4, forcing US 401(k) and other overseas pension account holders to file ITR-2 or ITR-3 instead. The update is meant to streamline reporting of foreign assets and income, consistent with existing disclosure expectations. A tax deferment option remains available through Form 10-EE.
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