Foreign assets disclosure for ordinary resident

Got it! Here’s how you can handle disclosure of foreign income and foreign assets for a Resident and Ordinary Resident (ROR) in your Indian Income Tax Return (ITR):

1. Where to disclose foreign income and assets in ITR?

For a Resident and Ordinary Resident (ROR), global income and assets are taxable and must be disclosed.

• Foreign Income (e.g., income from stocks, interest on foreign bank accounts):

  • Disclose under Schedule FSI (Foreign Source Income) or Schedule OS (Income from Other Sources)depending on the ITR form.

• Foreign Assets / Bank Accounts (including Foreign Bank Account balances, stocks, mutual funds, etc.):

  • Disclose under Schedule FA (Foreign Assets and Income).

    This schedule asks for:

    • Details of foreign bank accounts,

    • Financial interests in any entity outside India,

    • Immovable property abroad,

    • Other foreign assets,

    • Details of income derived from these assets.

2. Relevant ITR Forms:

• Usually ITR-2 or ITR-3 (for individuals and HUFs having foreign income/assets).

• These forms have Schedule FA and related schedules for foreign income.

3. If you have already filed without disclosure:

• Since your assessment is complete and refund received, but disclosure was omitted:

  • You can file a Revised Return under Section 139(5) before the end of the relevant assessment year or before completion of assessment (whichever is earlier).

  • Alternatively, if the timeline is over, consider filing a rectification request under Section 154 or approach the assessing officer to disclose omitted income/assets.

  • Remember, non-disclosure of foreign assets and income can lead to penalties and scrutiny.

4. Penalty & Compliance:

• Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, failure to disclose foreign assets and income can attract heavy penalties.

• Ensure full and honest disclosure to avoid legal issues.

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