USA Residents:

 

To whom applicable:

If Tax Payer is either a US Citizen or Green card holder or Resident Alien during the calendar year then he/she need to report your worldwide Income on USA Tax Return and there are various foreign compliance which needs to be complied with failing with heavy interest and penalty may apply.

What needs to be reported:

Worldwide Income includes all types of Income whether or not they are taxable in India. Even exempt income also needs to be reported. Foreign assets include Bank Accounts, FD, LIC, Retirement Accounts, Mutual Funds, Interest in foreign corporation etc. Foreign Account having signatory authority also needs to be reported.

 

Indian Residents:               

 

To whom applicable:

if an Assess is Resident which includes both Resident and Ordinary Resident (ROR) and Resident but not ordinary Resident(RNOR) need to comply with foreign compliance.

What needs to be reported:

The rule for ROR Assessee is similar to the person who is US Resident Alien and so he needs to report his worldwide Income in India and report his Foreign Assets.

Even though RNOR Assessee is not required to report all his worldwide income but they are required to comply with reporting foreign assets under the new Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015

Indian Government has taken aggressive step to control Black Money and Money Laundering transaction by passing Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 and now every person having foreign assets or income is compulsorily required to compliance with this provision failing which 30% Tax and 90% stringent penalty will be applied. Assessee with non compliance may have to face prosecution from 3 to 10 year.For complete details http://hkvk.in/index.php/what-s-new/highlights-of-the-undisclosed-foreign-income-and-assets-imposition-of-tax-bill-2015