ITR 2 / Schedule FA / Income tax

@ Manasi Biyani

There is a bug in the utility, it would not accept Zero as input in many cases.

Instead of 0 put a small amount like 5 or 10 and it will accept.

And I do not think I-T Dept has enough resources to start scrutiny of INR 10

Thank you Ranjan 

Schedule FA is based on the foreign asset/interest held during the relevant calendar year, not merely on whether the LLC has started trading. If you legally own a 100% membership interest, disclose it under the appropriate foreign-entity/financial-interest category and report the ownership and dates as required. The LLC’s legal form and the exact Schedule FA field matter; do not treat “no income or funding” as automatically meaning there is no reportable interest.

Do not enter ₹1 or ₹10 unless that is genuinely the value of your interest and you can support it. A forced nominal amount may misstate the disclosure. Check the field’s instructions and whether it permits nil or a value based on the interest’s actual acquisition/cost; if the utility rejects the correct nil/zero position, retain evidence of the error and seek a compliant filing route or clarification rather than inventing a figure. Any explanation should be consistent with the LLC documents and the return disclosures.

On FEMA, FC-GPR is generally relevant to an Indian company issuing shares to a non-resident; it is not the usual form for a resident Indian acquiring an interest in a US LLC. That does not by itself settle FEMA compliance: the overseas investment rules can apply to a resident’s acquisition or establishment of a foreign entity, and the applicable route, reporting and authorised-dealer bank process depend on the facts, including how the entity was formed, its ownership rights and whether any funds or other value were provided. No income generally means no income to report from the LLC, but it does not remove Schedule FA or other information-reporting obligations. Tax and scrutiny outcomes cannot be determined solely from the absence of transactions; preserve incorporation and ownership records, bank statements and evidence that no contribution or distribution occurred.

For this filing, verify the LLC’s legal rights and the relevant tax-year and calendar-year disclosure periods, then reconcile Schedule FA with the FEMA position and supporting records. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. If you’re looking to simplify recurring compliance workflows, you’re welcome to connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1

Reporting a US LLC in Schedule FA:

• A resident who owns a US LLC reports it in Schedule FA under financial interest in an entity (the table for "financial interest in any entity"), with the nature of interest, date held, total investment, and income from it, on a calendar-year basis. Also report any foreign bank account of the LLC where you have signing authority (Table B).

• The ODI rules under FEMA apply to the investment (through an AD bank).