/ ITR

Which Foreign Asset are to be Declared in Schedule FA of ITR

Foreign Assets are to be Declared in Schedule FA

Which Foreign Assets are to be Declared in Schedule FA of ITR

It explains the reporting requirements for resident & ordinarily resident taxpayers who hold foreign assets or income. This is general guidance. Reporting requirements may vary based on residential status and specific facts of the case. Professional advice is recommended before filing the return. Here’s a detailed breakdown:

Types of Asset / Income & Reporting Details

  1. Foreign ESOPs/RSUs (vested shares)

    • When to Report: Every year from year of vesting till the year of sale
    • Where to Report: Schedule FA

  2. RSUs—shares sold by employer under sell-to-cover (for perquisite tax)

    • When to Report: Year of transfer (sale)
    • Where to Report: Schedule CG (capital gains, if any) & Schedule FA for balance shares

  3. Dividend from foreign shares

    • When to Report: Year of credit
    • Where to Report: Income from Other Sources

  4. Foreign shares/brokerage account (including dividend balance lying abroad)

    • When to Report: Every year till shares are sold / account is closed or funds repatriated
    • Where to Report: Schedule FA

  5. Foreign bank account

    • When to Report: Every year till the account is closed
    • Where to Report: Schedule FA

  6. Foreign insurance policy having surrender value

    • When to Report: Every year till maturity/surrender
    • Where to Report: Schedule FA

  7. Foreign immovable property (land/building)

    • When to Report: Every year till sold
    • Where to Report: Schedule FA
  8. We should also keep in mind the following important practical points in this reference : 
  • Disclosure is required even if income is NIL.
  • Low balance or inactive foreign accounts are NOT exempt.
  • Schedule FA reporting is independent of taxability.
  • Non-reporting may attract a penalty under the Black Money Act.

9.  Commonly Missed Foreign Assets (Also Reportable in Schedule FA)

  • Foreign mutual funds / ETFs
  • Foreign-retirement accounts (401(k), IRA, Superannuation, etc.)
  • Beneficial interest in foreign entities or trusts
  • Foreign custodial or investment accounts

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