Schedule FA Treatment for acquistion

If one holds a US listed shares as part of ESPP program and have been duely reflected in ITR2 in previous years as part of Schedule FA , In current year the same company is acquired resulting in 2 following payouts

1. Cash Dividend for every 0.5 shares held on acquistion date.

2. Share of Acquiring company in the ration of 0.5 for every one share post 1st point.

How will these 2 be reflected in this years itr Schedule FA A3 Columns

Initial value of the investment 8	Peak value of investment during the Period 9	Closing balance 10	Total gross amount paid/credited with respect to the holding during the period 11	Total gross proceeds from sale or redemption of investment during the period 12

TYA

Great question about how to reflect these acquisition-related payouts in Schedule FA (Foreign Assets) of your ITR, especially for ESPP shares listed in the US.

Let's break down the two payouts and how they fit into Schedule FA columns (A3):

Context:

You held shares of a US company (ESPP) previously reported in Schedule FA.
The company was acquired in the current year, resulting in:
1. Cash dividend for every 0.5 shares held on acquisition date
2. Shares of the acquiring company in ratio 0.5 per 1 share held, after dividend

How to report in Schedule FA columns (A3):

Column	Meaning	How to report
8	Initial value of the investment	Cost or book value of shares held at the start of the FY (before acquisition).
9	Peak value of investment during the period	Highest market value of shares held during the year before acquisition.
10	Closing balance	Value of shares of acquiring company held at the end of the FY (new shares received post-acquisition).
11	Total gross amount paid/credited with respect to holding during the period	Include the cash dividend payout here. Dividend is income credited during the year.
12	Total gross proceeds from sale or redemption of investment during the period	If you sold any shares (original or new acquiring company shares), report sale proceeds here. Otherwise, zero.

Additional notes:

The cash dividend received due to acquisition is taxable income and should be reported in the income heads separately (like income from other sources) but also reflected in column 11 as gross amount credited.
The shares received from acquiring company are considered a new foreign asset and their value should be reflected as closing balance (column 10).
The original shares are deemed extinguished after acquisition, so closing balance for the original shares is zero.
If any shares were sold/redeemed during the year, report proceeds in column 12.

Summary Table:

Event	Schedule FA Column	Value to Report
Holding original shares at start	8	Cost of original shares
Highest value of original shares	9	Peak market value of original shares
Shares received from acquiring company	10	Value of new shares held as on 31st March
Dividend received	11	Cash dividend amount received
Sale of shares (if any)	12	Proceeds from sale/redemption