Schedule FA requirement with RNOR status

This query is : Resolved

Akshit Jain (Querist)
Follow

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?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 October 2024 1. Yes.
2. No. If not earned in India.

Akshit Jain

Akshit Jain (Querist)
Follow

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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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.

Akshit Jain

Akshit Jain (Querist)
Follow

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?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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'

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now