How to Correctly Report Your Fidelity Brokerage Account in Schedule FA (Foreign Assets) – India Income Tax (2025)
Summary: Indian taxpayers holding a Fidelity brokerage account must report it accurately in Schedule FA while filing their Income Tax Return for 2025. The brokerage account must be disclosed under Table A2 as a foreign custodial account, with separate entries for each income type such as RSU dividends, MMF dividends, and stock-related proceeds. RSU shares and the Money Market Fund (MMF) must be reported in Table A3 as foreign equity and mutual fund investments, respectively, with MMF treated as a U.S. mutual fund rather than cash since it functions as a sweep account. Only actual stock sale proceeds are reported in A3, while MMF redemptions are excluded because its value remains fixed. All foreign dividend income, including RSU and MMF dividends, must be declared under Schedule OS, and taxpayers may claim Foreign Tax Credit using Form 67. Reporting must follow SBI TTBR exchange rates, avoiding double-reporting of MMF remittances or internal transfers.
The following instructions explain how to properly report your Fidelity Brokerage Account through Schedule FA (Foreign Assets) for India Income Tax (2025).
The following instructions explain how to correctly report your Fidelity brokerage account and its contents including RSUs and dividend income and cash swept into a Money Market Fund (MMF) which functions as a wallet for your Indian Income Tax Return (ITR) Schedule FA.
1. Table A2 – Foreign Custodial Account
The Fidelity brokerage account needs to be included in this section.
Different foreign income types need separate entries in this section using the following nature codes:
The nature codes for dividend reporting include two separate entries for RSU stock dividends and MMF dividends.
The financial asset redemption and sale proceeds should be reported under separate entries in Table A3.
The peak and closing balances need to be entered identically but each income type requires separate gross amount reporting.
2. Table A3 – Foreign Equity and Debt Interests
The Schedule requires you to list RSU shares as individual equity investments.
The MMF should be reported as a U.S. mutual fund instead of cash because it holds different investment types. The MMF holdings need to be combined into one entry which represents the entire year’s worth of investments.
The sale proceeds in Table A3 represent actual stock sales but do not include MMF redemptions because the MMF maintains a fixed unit value of $1.
3. Schedule OS – Income from Other Sources
The Schedule OS requires you to report all RSU and MMF dividend income as foreign dividend earnings.
You can apply for Foreign Tax Credit (FTC) through Form 67 to claim back U.S. tax deductions from dividend income.
4. Reporting MMF “Cash” Positions
The MMF functions as a cash sweep but you need to report it as a mutual fund investment for tax purposes.
The MMF remittances should not be reported as sale proceeds because this would result in duplicate reporting.
The “gross sale proceeds from sales” only apply to stock transactions and do not include MMF internal cash movements.
6. Foreign Exchange Rate for Reporting
The Income Tax Department requires you to convert your foreign assets using the SBI Telegraphic Transfer Buying Rate (TTBR) which applies to the specific date of RSU vesting.
Example Scenario
The following events occurred throughout the year:
The sale of RSU stocks resulted in $1,000 which needs to be reported in Table A3 as sale proceeds.
The Schedule OS requires you to report $50 in RSU dividend income.
The Schedule OS requires you to report $5 in MMF dividend income as foreign dividend income.
The MMF operates as a single asset in A3 without requiring multiple transaction entries because its unit value remains constant.
The $800 remittance to India does not require additional sale proceeds reporting.
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