Schedule FA declaration under B.Details of Financial Interest in any Entity held

Dear Sir/Madam,

In 2021 I agreed with my company(Startup founded in 2019) founder to purchase 2% stake for 40L. It is a Limited company in UK. Subsequently, I paid 40L to the company between march and 1st week of Apr 2021. Although the payment is made the updation of the Capitalization table will be done this year as there were delays due to financial contraints for the company. In 2021 I had declared the amount of 40L paid to the UK company under schedule FA B. Details of Financial Interest in any Entity held (including any beneficial interest) at any time during the relevant accounting period assuming the cap table will be updated.

However it did not happen so far and for the next 2 years and I havent updated the section FA for the transaction again. Could you please help to understand if I should declare it in AY2024-25? If yes, should I revise returns for the previous 2 AYs(23-24 and 22-23 as well?

If No, should I wait till the cap table is updated for getting it in my name before declaring in FA schedule?

Any help regarding this is greatly appreciated!

 

Replies (5)
Quick Summary
This discussion addresses a UK resident's query about declaring a 2% stake in a UK limited company purchased in 2021. Despite paying £40L, the capitalization table hasn't been updated. The user declared this in FY 2020-21 but not subsequent years and seeks guidance on reporting for AY2024-25 and potential revisions for prior years. The advice received is to declare it in the current AY and that revising previous returns is not possible, with a low likelihood of penalty as no taxable income was hidden.

Yes, declare it in current AY.

Revision of earlier ITR is not possible now.

Thank you for the reply Dhiraj sir!

Since I have declared it in FY20-21 but not in FY 21-22 and FY 22-23 would it entail a penalty?

 

 

Not in most of the cases. You have not hide any taxable income. Reporting of assets can be missed in such cases. But don't miss now onwards.

Sure. Thank you again sir!

Yes, there is no taxable income from the investment yet .

 

Good Luck.             

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details