Report Foreign Assets in Schedule FA for AY 2026–27

Taxpayers should therefore prepare the return from their own records and disclose applicable foreign assets and foreign-source income even when an item does not appear in AIS.

Why the AIS report needs careful use#

CBDT enabled the Foreign Assets Information facility on 20 July 2026. It may show foreign bank accounts, custodial accounts, investments, interest and dividends reported by overseas jurisdictions under automatic information-exchange arrangements. CBDT has clarified that it is not a complete or exhaustive record.

A foreign account opened, shares vested or an investment acquired during 2025 may therefore require disclosure even though it is not yet visible in AIS. The responsibility for correct reporting remains with the taxpayer.

Who should examine Schedule FA#

The first question is whether the person is resident and ordinarily resident in India for FY 2025–26 after applying the relevant residential-status tests.

Schedule FA generally requires examination by a resident and ordinarily resident individual or HUF with a reportable overseas asset, account, financial interest, signing authority or foreign-source income. The Income Tax Department’s ITR-2 guidance states that Schedule FA need not be completed by a non-resident or a resident but not ordinarily resident.

Common items include foreign bank and brokerage accounts, overseas shares, ESOPs or RSUs, foreign property, interests in overseas entities, foreign trusts, signing authority over overseas accounts, and foreign dividends, interest, salary or capital gains. A brokerage account and the securities held through it may require separate disclosures.

What to do before filing#

A taxpayer who must report foreign assets or foreign-source income should first confirm the correct return form. ITR-1 and ITR-4 do not contain Schedule FA. An individual or HUF without business or professional income would ordinarily examine ITR-2; a person with such income would ordinarily examine ITR-3, subject to the remaining eligibility conditions.

1. Determine residential status for FY 2025–26 using travel dates and the applicable tests.
2. Download the regular AIS and the separate Foreign Assets Information report.
3. Prepare an independent register of foreign assets held from 1 January to 31 December 2025 using bank, brokerage, employer stock-plan and transaction records.
4. Match each account or investment to the appropriate part of Schedule FA.
5. Report related income under its normal head and in Schedule FSI where applicable.
6. Complete Schedule TR and Form 67 where eligible foreign tax credit is claimed.

The foreign-asset register should capture the details required for the relevant Schedule FA table, such as the country, institution, account or investment, acquisition date, peak value, closing value, income and disposal proceeds.

Foreign-currency amounts must be converted into rupees using the telegraphic transfer buying rate prescribed in the return instructions for the relevant date. The correct date may differ for peak balances, investments, closing values, income and sale proceeds. One year-end exchange rate should not automatically be used for every field.

Example: overseas RSUs held by a Chennai employee#

Meera works for a technology company in Chennai and is resident and ordinarily resident for FY 2025–26. Shares of the overseas parent vest in August 2025 and are credited to a foreign brokerage account. She receives a dividend in October 2025 and sells part of the holding in February 2026.

For AY 2026–27, Meera should examine disclosure of the brokerage account and the underlying shares in the relevant parts of Schedule FA. The dividend should be reported under the appropriate normal income head and in Schedule FSI. If eligible foreign tax credit is claimed, Schedule TR and Form 67 also require attention.

The February 2026 sale falls within FY 2025–26 for capital-gains reporting, but outside the Schedule FA calendar year ending 31 December 2025. Her 2025 account and shares may not yet appear in AIS, but that does not defer an applicable disclosure.

Common mistakes to avoid#

The most frequent mistake is treating AIS as the taxpayer’s complete foreign-asset ledger. It should instead be reconciled with independently collected records.

• Filing ITR-1 merely because salary is the main source of income.
• Using the Indian financial year for every Schedule FA entry.
• Reporting foreign income only in Schedule FSI and not under its normal income head.
• Ignoring an account closed during 2025 or an account over which the taxpayer has signing authority.
• Reporting a brokerage account but overlooking the underlying investments.
• Assuming that a dormant or low-value account is automatically outside Schedule FA.

An account held at any time during the relevant calendar year may require consideration even if it was closed before 31 December. The precise treatment should be reviewed against the notified return and the taxpayer’s facts.

Frequently asked questions