Foreign assets include NRE & FCNR deposits maintained in India ?

 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. _

Reasoning:_

 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.