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Foreign assets include NRE & FCNR deposits maintained in India ?

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Krishna

Assistant

702 Points Joined July 2011

sir;

Does foreign assets include NRE & FCNR deposits maintained in India ? These details are required to be disclosed in schedule FA ( foreign assets) in case of resident assessee?

please reply. Thanks in advance.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9434 Points Joined December 2011

Schedule FA in the Indian income tax return requires resident assessees to disclose their foreign assets.

The question is whether Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) deposits maintained in India are considered foreign assets. _

Answer:_ NRE and FCNR deposits maintained in India are not considered foreign assets for the purpose of disclosure in Schedule FA. _

1. _NRE Deposits:_ NRE deposits are maintained in Indian rupees and are exempt from Indian income tax.

Although these deposits are held by non-resident Indians, they are not considered foreign assets.

2. _FCNR Deposits:_ FCNR deposits are maintained in foreign currency and are also exempt from Indian income tax.

Similar to NRE deposits, FCNR deposits are not considered foreign assets. _

Disclosure Requirement:_ Only foreign assets held outside India need to be disclosed in Schedule FA.

This includes: - Bank accounts outside India - Deposits with foreign banks - Investments in foreign companies - Immovable properties outside India - Any other foreign assets In conclusion: NRE and FCNR deposits maintained in India are not considered foreign assets and do not need to be disclosed in Schedule FA.

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