Schedule FA A2 and FA A3

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We faced two difficulties in reporting foreign assets under Schedule FA A2 and A3.

 

  1. Under schedule FA A2 there is a drop down menu to disclose credits to the account by way of Dividend, Interest, Sale, Redemption. In case one has credits from more than one source ie interest , Dividend and sale etc ie the form does not allow one to fill up more than one source ?
  2. Gift City. For IT purposes Gift City is taken as an IFSC and investment in an entity listed in the Gift City is considered as a Foreign Asset. However FA2 and FA3 do not have a code for Gift City or India and one can not fill in this investment.

Any thoughts or solutions

 

Replies (3)

Can we use 9999 others and give other details?

Since it is only disclosure, I hope it doesn't matter much.

Experts can suggest if there is any other way

In Schedule FA A2, if you have credits from more than one source like Dividend , interest, and 'Sale , and the form only allows selecting one source from the dropdown, you might need to check if there is an option to add multiple entries or break down credis by each source in a different section. 

For investments in gift City (considered an ifsc for IT purposes and treated as a foreign asset): Since FA2 and FA3 don't have a code for Gift City or India you might need to check if there is a specific code or treatment for IFSCs like Gift City in tax reporting guidelines. 

Hi Sach and Rama chary,

Regarding your specific queries on Schedule FA Tables A2 and A3:

1. **Multiple Credit Sources in Table A2**: If you have received both dividend credits and proceeds from stock sales in the same foreign brokerage account (like IBKR, Fidelity, Vested), the ITR utility expects you to report the peak balance held during the calendar year (Jan 1 to Dec 31). For the dropdown specifying the nature of credit, you should select the predominant source of credit (e.g., Sale proceeds or Dividend) or add separate rows for the same account if you wish to itemize distinct credit streams separately.

2. **GIFT City / IFSC Assets**: While investments in GIFT City IFSC are technically treated as foreign assets under FEMA regulations, standard Income Tax filing guidelines clarify that domestic resident accounts in GIFT City do not require Schedule FA Table A2/A3 reporting if they are mapped to your Indian PAN, unless you are holding international stocks listed on global exchanges.

Manually converting calendar-year peak USD balances and applying Rule 115 TTBR forex rates across Tables A2 and A3 can be very tedious. To automate this compliance, you can use https://itrfa.in — it automatically parses foreign broker CSV statements and generates exact Table A1, A2, and A3 entries ready for your ITR-2 or ITR-3 filing. Hope this clarifies!

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