The income tax (I-T) department has begun issuing notices to MNC employees holding foreign-based Employee Stock Options (ESOP) who haven't declared dividend income from these shares. Experts said this was the first time several people were issued notices for not disclosing their foreign income and assets in their previous return, including property, shares, and dividends.

A case involves a Gujarat resident employed at a Bengaluru IT firm who possesses ESOPs from their American parent company. Experts said tax authorities are now obtaining ownership details of foreign assets from countries including the USA and UAE.

Jainik Vakil, who chairs the direct tax committee of the Gujarat Chamber of Commerce and Industry (GCCI) and works as a chartered accountant, said, "For the first time, the income tax department has started issuing notices in large numbers to resident Indians for not disclosing their foreign assets. If they don't file revised returns declaring their ESOPs before Dec 31, taxpayers may face penalties."