CA K Sanjay BhargavChartered Accountant
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The foreign assets people forget to report in Schedule FA

CA K Sanjay Bhargav, Chartered Accountant, Bengaluru

Membership No. 250054 · DISA (ICAI)

Published

Short answer: Schedule FA covers every foreign asset or account you held at any time during the calendar year, whether as legal owner, beneficial owner or beneficiary, plus foreign accounts you can sign on without owning. The main brokerage account is rarely what gets missed. It is the old student or old-job bank account, the 401(k), the cash left in the RSU account, a Wise balance, a policy with a surrender value, crypto on an overseas exchange, a stake in a foreign company, a family trust, or an employer account you are a signatory on. The ₹20 lakh Black Money Act threshold affects the penalty, not whether you fill in the schedule.

These are also the items most likely to sit behind the department's current emails. If you received one, start with the income tax email on overseas financial interests.

Who fills Schedule FA, and for which period

Four rules decide it.

  • Only a resident and ordinarily resident individual fills it. The department's own guide says it need not be completed by someone who is non-resident or resident but not ordinarily resident (RNOR) for the year.
  • The period is the calendar year, not the Indian April-to-March year. For AY 2026-27 that is 1 January to 31 December 2025.
  • Anything held at any time in that year counts. An account closed in March, or shares sold in June, still go in.
  • Ownership is wider than your name on the account. You report as legal owner, as beneficial owner (you provided the money, directly or indirectly), or as beneficiary (you benefit from an asset someone else paid for).

Schedule FA is in ITR-2 and ITR-3. ITR-1 and ITR-4 do not have it, so anyone with a foreign asset cannot use them.

The tables, as the department sets them out

TableTitleTypical contents
A1Foreign depository accountsBank accounts; peak and closing balance, interest
A2Foreign custodial accountsBrokerage and equity-plan accounts
A3Foreign equity and debt interestEach share or bond holding
A4Foreign cash value insurance or annuity contractsPolicies with a surrender value
BFinancial interest in any entity outside IndiaStakes in foreign companies, LLCs, partnerships
CImmovable property outside IndiaFlats, houses, land
DOther capital assets outside IndiaAnything not covered above
EAccounts with signing authorityAccounts you can operate but do not own, not reported in A1 to D
FTrusts created outside IndiaAs trustee, beneficiary or settlor
GOther income from outside IndiaIncome not covered in A1 to F

Values are converted at SBI's telegraphic transfer buying rate on the relevant date: the date of the peak, the date of investment, or 31 December.

The ones that get missed

AssetTableCounts toward ₹20 lakh?
Dormant bank account from studying or working abroadA1Yes
401(k), IRA and similar retirement accountsA2 in common practiceYes
Employer brokerage account and the cash in itA2, holdings in A3Yes
Wise, Revolut, PayPal balances held abroadA1 in common practiceYes
Foreign insurance with a cash valueA4Yes
Crypto on a foreign exchangeD in common practiceYes, if treated as a foreign asset
Stake in a foreign company or LLCBYes
Foreign trust, as beneficiary or settlorFUnsettled
Signing authority on someone else's accountEBetter view no; unsettled

The old student or old-job bank account

The account opened for a master's degree in 2014, or during a posting to Singapore, with a few hundred dollars still in it. It goes in Table A1 with its peak balance, closing balance and interest for the year. A small balance is not an exemption.

These accounts are the ones CRS reports most reliably, because foreign banks report year-end balances and interest on accounts held by Indian tax residents. They are also the classic Entry 2 case under FAST-DS: an asset funded from income earned while non-resident and not reported on becoming resident, which settles for a flat ₹1,00,000 rather than 60% of value. See the FAST-DS pillar. If it goes to FAST-DS, the account is valued at the sum of every deposit since it was opened, so the full statement history matters.

401(k), IRA and other foreign pensions

A 401(k), an IRA, a UK workplace pension or SIPP, or a Canadian RRSP is an account held outside India, and it belongs in Schedule FA. The form does not name retirement accounts. Most practitioners report defined-contribution accounts in Table A2, because the plan holds investments on your behalf. A defined-benefit entitlement with no account balance is a less settled case.

Section 89A of the 1961 Act (section 158 of the 2025 Act) lets a resident defer tax on the growth in a retirement account maintained in a notified country (the US, the UK and Canada) until withdrawal, if Form 10-EE is filed. That defers the tax. It does not remove the disclosure.

Do not rely on AIS here. What the US sends India under FATCA is income paid, such as interest and US-source dividends, not account balances, so a 401(k) that paid nothing out in the year may never appear.

The employer brokerage account, and the cash beside the shares

Most people report the vested RSUs. Fewer report the account, and fewer still the cash in it.

  • The account (E*TRADE, Fidelity, Schwab, Morgan Stanley at Work) goes in Table A2, with its peak and closing balance for the calendar year.
  • Each holding goes in Table A3: vesting date as the acquisition date, the vesting-date value as the initial value, then peak and closing value.
  • Uninvested cash from sell-to-cover residue, dividends or fractional-share sales is part of the account's balance, so it sits within the A2 figures. Where the platform sweeps cash into a partner bank, some practitioners show that balance in A1 instead. It must appear once, and only once.
  • ESPP shares are reported the same way. Unvested RSUs are not yet held and are not reported.

The field-by-field mapping is in Schedule FA from your broker statement, and platform specifics in Schedule FA for Fidelity, Schwab and Morgan Stanley.

Wise, Revolut and PayPal balances

A balance held with a provider outside India is a foreign asset. The form does not name e-money, and the common treatment is Table A1, since it is money held for you rather than securities.

The reporting position is changing. A deposit with a bank has always been within the Common Reporting Standard (CRS). E-money was brought into CRS by the OECD's 2023 amendments, which the EU applied from 1 January 2026, with first reports due in 2027. Wise states that it collects tax-residence self-certifications and reports under CRS. So a balance from earlier years may not appear in your AIS, but it was still reportable in Schedule FA for each year you held it while resident.

Foreign insurance with a cash value

A life policy taken out abroad that builds a cash or surrender value, such as whole-life cover or an investment-linked policy, goes in Table A4, with the value at year end and anything paid out. Pure term cover with no surrender value is not an asset to report. Cash-value policies are within CRS, so these can appear in AIS.

Crypto on a foreign exchange

There is no crypto table in Schedule FA and no CBDT clarification on where a crypto holding is located. The cautious and common approach is to disclose holdings on an exchange outside India in Table D, other capital assets, with gains reported separately in the virtual digital asset schedule. India is expected to start exchanging information under the OECD's Crypto-Asset Reporting Framework from 2027, so this will not stay out of the department's data.

A stake in a foreign company, LLC or partnership

Shares in a friend's Delaware start-up, a US LLC set up for freelance work, or an interest in a foreign partnership usually go in Table B, financial interest in any entity outside India (some practitioners put a plain minority shareholding in A3; what matters is that it appears once). The department's guide makes Table B wide: it includes holdings through an agent or nominee, and entities in which you own any share, voting power or interest in profits. Listed shares held through a broker belong in A3 instead.

A foreign trust

Being a trustee, beneficiary or settlor of a trust set up under foreign law goes in Table F. A discretionary family trust abroad of which you are one of several beneficiaries is the usual miss. The Black Money Act's reporting penalty expressly reaches assets of which you are a beneficiary. How to value a discretionary beneficiary's interest for the ₹20 lakh test is not settled, so treat it with care.

Signing authority on an account you do not own

A finance employee authorised on a foreign group company's account, or a child holding a power of attorney over a parent's account abroad, goes in Table E. That table covers foreign accounts you can operate that are not already reported in A1 to D, with the peak balance or value.

The account is not your asset. The better view is that it does not count toward your ₹20 lakh aggregate, because the penalty provision is framed around assets held as owner or beneficiary, but no authority settles it. The disclosure in the return is required either way.

The ₹20 lakh threshold: what it does and does not do

From 1 October 2024, the provisos to sections 42 and 43 of the Black Money Act take assets other than immovable property, with an aggregate value up to ₹20 lakh, outside the penalties for not reporting them. A CBDT instruction of 18 August 2025 says prosecution will not be started where that proviso applies.

Three limits:

  • It does not remove the obligation to complete Schedule FA. It removes the penalty for failing to.
  • It is an aggregate. Every item in the table above that counts goes into one total.
  • Whether it covers defaults before 1 October 2024 is arguable, as the site's FAST-DS pillar explains.

The detail is in the ₹20 lakh threshold.

If you find one you missed

Year of the omissionRouteDeadline
AY 2026-27 (calendar year 2025)Revised return31 March 2027; fee under s.234-I if revised late in the window
AY 2025-26 and earlierFAST-DS: Entry 2 (flat ₹1,00,000) if funded from non-resident-period or already-taxed income; Entry 1 (60% of value) if the source is unexplained31 December 2026

The revised-return route is in missed Schedule FA? The revised return window. For the tax and reporting of RSUs and foreign brokerage accounts generally, see foreign income, RSU and ESOP filing.


This note lists the foreign assets most often left out of Schedule FA and where each is reported. It is not advice on any individual's position. Table letters and titles follow the Income Tax Department's published guide to Schedules FSI, TR and FA; confirm them against the ITR-2 or ITR-3 utility for the year you are filing. Where the form does not name an asset (retirement accounts, e-money, crypto), the table given is common practice rather than a CBDT ruling. Residential status for each year, the source of each asset's funding and the value of each item should be confirmed before a return is revised or a FAST-DS declaration is filed.

Frequently asked questions

Do I report a US 401(k) or IRA in Schedule FA?

Yes, if you are resident and ordinarily resident in India. A 401(k) or IRA is an account held with a financial institution outside India, and Schedule FA covers every foreign account in which you are the legal or beneficial owner. The form does not name retirement accounts, so the table is a matter of practice; most practitioners use Table A2, foreign custodial accounts, because the plan holds investments for you. Deferring the tax on its growth under section 89A of the 1961 Act, section 158 of the 2025 Act, does not remove the disclosure.

My RSU account has some uninvested cash. Is that reported separately?

It has to be reported, but usually not as a separate account. The brokerage account goes in Table A2 with its peak and closing balance, and those figures include the cash sitting in it from sell-to-cover residue, dividends or fractional share sales. Each share holding goes in Table A3. Where the platform sweeps cash into a partner bank, some practitioners show that balance in Table A1 instead. Either way it must appear once, not be left out and not be counted twice.

Is a Wise or Revolut balance a foreign asset?

A balance held with a provider outside India is a foreign asset and belongs in Schedule FA, usually in Table A1 alongside bank accounts, since it is money held for you rather than securities. Whether it has been reported to India is a different matter. Bank deposits have always been within the Common Reporting Standard. E-money balances were brought in by amendments that the EU applied from 1 January 2026, with the first reports due in 2027. Not appearing in AIS does not mean not reportable.

Do I report crypto held on a foreign exchange?

There is no dedicated table for it and CBDT has not issued a clarification on where a crypto holding is located. The cautious and common approach is to disclose crypto held on an exchange outside India in Table D, other capital assets, with gains reported in the separate virtual digital asset schedule. Exchange of crypto account information between countries under the OECD's Crypto-Asset Reporting Framework is expected to reach India from 2027, so the position will not stay invisible.

I only have signing authority on my employer's foreign bank account. Do I report it?

Yes, in Table E, which exists for foreign accounts in which you have signing authority and which are not already reported in the earlier tables. The account is not your asset, and the better view is that it does not count toward the ₹20 lakh Black Money Act threshold, since the penalty provision is framed around assets you own or benefit from. That point is not settled. The disclosure in the return is required either way.

If my foreign assets are below ₹20 lakh, can I skip Schedule FA?

No. The ₹20 lakh figure is in the provisos to the penalty sections of the Black Money Act. From 1 October 2024 it takes assets other than immovable property, with an aggregate value up to ₹20 lakh, outside the ₹10 lakh penalty for non-disclosure, and a CBDT instruction extends the same relief to prosecution. It does not change the return form. A resident and ordinarily resident individual with foreign assets still has to complete Schedule FA.

Not sure whether an old account or pension counts?

Send a list of every foreign account, policy, holding and role you have or had, with the years, on WhatsApp or by email. What goes in which table, what was missed in earlier years and whether it needs a revised return or FAST-DS are settled before anything is filed.

Related service: Foreign Income / RSU & ESOP