Do you need Schedule FA? Check in 30 seconds.
The basic but confounding questions everyone hits while filling Schedule FA: do I even need it, which calendar year does it cover, where do vested RSUs go, does a closed or empty account count, what if I missed earlier years? Answer four questions and get it resolved for your exact situation, with the tables to fill and the records to keep.
What is Schedule FA?
Schedule FA (Foreign Assets) is the part of the Indian income tax return where a Resident and Ordinarily Resident discloses every foreign asset held at any time during the relevant calendar year: bank accounts, brokerage accounts, shares (including vested RSUs of a foreign employer's parent), retirement accounts, insurance with cash value, business interests, property, trusts, and accounts with signing authority. It exists only in ITR-2 and ITR-3. Disclosure is required even if the asset produced no income, even if the account balance is nil, and even if your total income is below the taxable limit — holding a foreign asset by itself makes filing a return mandatory.
The calendar-year trap
Indian income tax runs on the financial year (April to March), but Schedule FA runs on the calendar year (January to December). This mismatch causes more confusion than everything else combined. The rule: your Schedule FA covers the calendar year that ends on 31 December falling within the financial year.
| Return you are filing | Schedule FA covers |
|---|---|
| AY 2025-26 (FY 2024-25) | 1 Jan 2024 to 31 Dec 2024 |
| AY 2026-27 (FY 2025-26) | 1 Jan 2025 to 31 Dec 2025 |
| AY 2027-28 (FY 2026-27) | 1 Jan 2026 to 31 Dec 2026 |
Two consequences trip people up. Bought US stocks in January 2026? They first appear in next year's Schedule FA (AY 2027-28), not this year's. But the flip side: the income from those stocks between January and March 2026 falls in FY 2025-26 and is taxable in AY 2026-27 through Schedule FSI, even though the asset itself is not yet in Schedule FA. Asset disclosure follows the calendar year; income follows the financial year.
What non-disclosure actually costs
Schedule FA is enforced through the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, not the ordinary Income Tax Act. Sections 42 and 43 prescribe a penalty of ₹10 lakh per year for failing to file or for missing or inaccurate foreign-asset disclosure. Since the Finance (No. 2) Act 2024 (effective 1 October 2024), the penalty does not apply where the aggregate value of foreign assets other than immovable property stayed within ₹20 lakh. Wilful cases can escalate to prosecution. And unlike domestic income, there is no time limit on when foreign income and assets can be examined — which is why the records matter as much as the disclosure. India receives foreign account data automatically through CRS and FATCA, so "they won't know" is not a strategy.
Frequently asked questions
I started investing in US stocks in January this year. Do I report Schedule FA this filing season?
Not yet. For AY 2026-27 the window is 1 January to 31 December 2025, so purchases made from January 2026 first appear in AY 2027-28. But any dividend or gain earned between January and March 2026 falls in FY 2025-26 and is taxable in AY 2026-27 through Schedule FSI — asset disclosure follows the calendar year; income follows the financial year.
How do I report vested RSUs that I haven't sold?
Vested RSUs of a foreign parent go in Table A3 even if unsold: date of acquisition is the vest date, initial value is the FMV at vesting (the amount your employer already taxed as perquisite), plus peak and closing values converted at the SBI TTBR. The stock plan account holding them (E*TRADE, Fidelity, Schwab) is a separate Table A2 custodial-account row — missing it is the most common Schedule FA mistake. Unvested RSUs are not reportable. You'll need ITR-2 or ITR-3.
My foreign account was closed last year. Do I still report it?
Report it if it was open at any time during the relevant calendar year. Closed December 2024 → belonged in AY 2025-26, not AY 2026-27. Closed March 2025 → still appears in AY 2026-27 with peak balance up to closure. If the exact opening date of an old account is lost, the earliest statement you hold is the commonly used anchor — keep that statement and the closure confirmation permanently.
Do I report a foreign brokerage account with zero balance, or one I never funded?
If an account number was issued and the account was open during the window, the safer position is to report it with nil values. Reporting nil costs nothing; not reporting an account the department later sees through CRS/FATCA data risks the ₹10 lakh section 43 penalty (subject to the ₹20 lakh relief). If you only completed a partial signup and no account was actually opened, there is nothing to report.
I never filed Schedule FA in earlier years. What now?
First check the relief: since 1 October 2024, the ₹10 lakh penalty does not apply where your aggregate non-immovable foreign assets stayed within ₹20 lakh — small US stock holdings usually sit well inside it. Then fix what you can: the current year's return can be revised under section 139(5) until 31 December of the assessment year, and older years may be addressable via ITR-U (up to 48 months back, with graded additional tax). Start disclosing correctly from this year — wilful continued non-disclosure is what escalates risk. For past years, take your statements to a CA.
Is a PayPal, Wise or other foreign fintech wallet a foreign asset?
A foreign platform wallet holding a balance in your name functions as a foreign account — generally reported as a depository account in Table A1 with peak and closing balances (Table A2 if the platform holds assets rather than cash). The income that flowed through it is separately taxable under the normal heads. Download and keep the wallet history — foreign platforms often limit how far back statements go.
I reinvested my US dividends instead of withdrawing them. Do I still declare them?
Yes. Dividends are taxable on accrual, in the year credited, whether or not you withdrew them. They go in Income from Other Sources and Schedule FSI, and appear inside Schedule FA as gross amounts credited in Tables A2/A3. The 25% US withholding is claimable as Foreign Tax Credit — our Form 67 calculator works that number out and lists the supporting documents.
Which ITR form has Schedule FA, and how do I "enable" it?
Schedule FA exists only in ITR-2 and ITR-3 (plus ITR-5/6/7 for non-individuals) — it is not in ITR-1 or ITR-4, which is why salaried filers can't find it. Holding any foreign asset disqualifies you from ITR-1/ITR-4. On the e-filing portal: choose ITR-2, confirm residential status as ROR in the general information section, and Schedule FA appears in the schedule list. Holding foreign assets also makes filing mandatory even if your income is below the exemption limit.
Is my 401(k) or IRA reportable in Schedule FA?
Yes — a 401(k) or IRA held by an ROR is a foreign asset and must be disclosed. Table placement varies in practice: many report it as a custodial account in A2, some as an annuity-style contract in A4, others under D. Whichever your CA prefers, disclose it and keep every annual plan statement. Separately, section 89A (via Form 10-EE) lets you defer Indian tax on the accretion in US/UK/Canada retirement accounts until withdrawal.
What documents should I keep for Schedule FA, and for how long?
Year-end and monthly account statements, vest confirmations and plan statements, broker trade confirmations, SBI TTBR evidence for your peak/closing dates, account opening and closure confirmations, retirement plan statements, and the Schedule FA working itself. The Black Money Act sets no time limit on examining foreign income and assets, so keep all of it permanently. Foreign banks and brokers typically let you download only a few years of history, and access disappears when you close the account or leave the employer — DigiLocker stores none of this.
More free tools: claiming credit for foreign tax withheld on your dividends or salary? The Form 67 Foreign Tax Credit calculator computes your FTC and lists the treaty documents to keep. Received a notice after filing? The 143(1) Intimation Decoder explains each adjustment. See all free tools.
Disclaimer: This checker gives directional guidance on Schedule FA disclosure categories. It is not professional tax advice. Table placement for some assets (notably retirement accounts) varies in legitimate practice, valuation and conversion rules have specifics this tool does not compute, and your residential status determination has edge cases. Confirm your final Schedule FA with a qualified Chartered Accountant before filing.