Schedule FA requirement with RNOR status
This query is : Resolved
27 October 2024
If an individual files a return with RNOR status, is he required to file Schedule FA and declare foreign assets? Also, is he required to declare foreign income?
28 October 2024
1. Yes.
2. No. If not earned in India.
2. No. If not earned in India.
28 October 2024
Your first answer is incorrect.
" If you are a resident in India, you are required to furnish details of any foreign asset
etc. in this Schedule.This Schedule need not be filled up if you are ‘not ordinarily resident’ or
a ‘non‐resident’.
Source - https://www.incometax.gov.in/iec/foportal/sites/default/files/2021-05/Instructions_ITR3_AY2021_22.pdf
" If you are a resident in India, you are required to furnish details of any foreign asset
etc. in this Schedule.This Schedule need not be filled up if you are ‘not ordinarily resident’ or
a ‘non‐resident’.
Source - https://www.incometax.gov.in/iec/foportal/sites/default/files/2021-05/Instructions_ITR3_AY2021_22.pdf
28 October 2024
It is contradicting issue, as per circular no.21 pf 2019 dated,27 Aug.,2019 it has been stated that the resident Indians (not specified only ROR) having :
(a) held, as beneficial owner, beneficiary or otherwise, any asset (including financial interest in any entity) located outside India; or
(b) had signing authority in any account located outside India; or
(c) had income from any source outside India
are required to fill Schedule FA.
(a) held, as beneficial owner, beneficiary or otherwise, any asset (including financial interest in any entity) located outside India; or
(b) had signing authority in any account located outside India; or
(c) had income from any source outside India
are required to fill Schedule FA.
28 October 2024
Thank you for clarifying. However, because the ITR website clearly states that "This Schedule need not be filled up if you are ‘not ordinarily resident’ or a ‘non‐resident’", I suppose it is not mandatory for RNOR to fill Schedule FA. What is your expert opinion given the contradiction that you have pointed out?
28 October 2024
Though it is not mandatory, but when department finds any foreign interests (even if genuine) which are not declared in ITR, considers as suspicious and sends query.
If assessee is ready to follow them up as and when mandated, may not fill it. The wordings are very clear 'need not'; but not as 'not required to be filled'
If assessee is ready to follow them up as and when mandated, may not fill it. The wordings are very clear 'need not'; but not as 'not required to be filled'
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