ITR and Disclosure of Foreign Assets & Income from any source outside India’

As per Notification No. 41/2015 Dated 15.04.2015 and ITR attached with the same alongwith the Instructions a resident assessee has to disclose ‘Details of Foreign Assets and Income from any source outside India’ as follows :-

A. Details of Foreign Bank Accounts held (including any beneficial interest) at any time during the previous year

1. Country Name and Code

2. Name and Address of the Bank

3. Account holder name

4. Status-Owner/ Beneficial owner/ Beneficiary

5. Account Number

6. Account opening date

7. Peak Balance During the Year (in rupees)

8. Interest accrued in the account

9. Interest taxable and offered in this return

• Amount
• Schedule where offered
• Item number of schedule

B. Details of Financial Interest in any Entity held (including any beneficial interest) at any time during the previous year

1 .Country Name and code

2. Nature of entity

3. Name and Address of the Entity

4. Nature of Interest-Direct/Beneficial/owner/Beneficiary

5. Date since held

6. Total Investment (at cost) (in rupees)

7. Income accrued from such Interest

8. Nature of Income

9. Income taxable and offered in this return

• Amount Schedule
• where offered
• Item number of schedule

Guideline for filling Schedule FA ‘Details of Foreign Assets and Income from any source outside India’

(i) This schedule is to be filled up by a resident assessee. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’. Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This also includes details of any account located outside India in which the assessee has signing authority, details of trusts created outside India in which you are settlor, beneficiary or trustee. Under all the heads mention income generated/derived from the asset. The amount of income taxable in your hands and offered in the return is to be filled out under respective columns. Item G includes any other income which has been derived from any source outside India and which has not been included in the items A to F and under the head business of profession in the return.

(ii) This schedule is to be filled in all cases where the resident assessee is a beneficial owner, beneficiary or legal owner. For this purpose,-

• Beneficial owner in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset and where such asset is held for the immediate or future benefit, direct or indirect, of the individual providing the consideration or any other person.
• Beneficiary in respect of an asset means an individual who derives an immediate or future benefit, directly or indirectly, in respect of the asset and where the consideration for such asset has been provided by any person other than such beneficiary.

Where the assessee is both a legal owner and a beneficial owner, mention legal owner in the column of ownership.

(iii) (A) The peak balance in the bank account during the year is to be filled up after converting the same into Indian currency.

(B) Financial interest would include, but would not be limited to, any of the following:-

(1) if the resident assessee is the owner of record or holder of legal title of any financial account, irrespective of whether he is the beneficiary or not.

(2) if the owner of record or holder of title is one of the following:-

(i) an agent, nominee, attorney or a person acting in some other capacity on behalf of the resident assessee with respect to the entity.

(ii) a corporation in which the resident owns, directly or indirectly, any share or voting power.

(iii) a partnership in which the resident assessee owns, directly or indirectly, an interest in partnership profits or an interest in partnership capital.

(iv) a trust of which the resident has beneficial or ownership interest.

(v) any other entity in which the resident owns, directly or indirectly, any voting power or equity interest or assets or interest in profits.

(3) the total investment in col(5) of part (B) has to be filled up as investment at cost held during the year after converting it into Indian currency.

(C) The total investment in col(5) of part (C) has to be filled up as investment at cost in immovable property held during the year after converting it into Indian currency.

(D) The total investment in col(5) of part (D) has to be filled up as peak investment (at cost) held during the year after converting it into Indian currency. Capital Assets include financial assets which are not included in part (B) but shall not include stock-in-trade and business assets which are included in the Balance Sheet.

(E) The details of peak balance/investment in the accounts in which you have signing authority and which has not been included in Part (A) to Part (D) mentioned above has to be filled up as peak investment/balance held during the year after converting it into Indian currency.

(F) the details of trusts under the laws of a country outside India in which you are a trustee has to be filled up.

(iv) For the purpose of this Schedule, the rate of exchange for the calculation of the value in rupees of such asset situated outside India shall be the telegraphic transfer buying rate of such currency as on the date of peak balance in the bank account or on the date of investment.

Explanation: For the purposes of this Schedule, “telegraphic transfer buying rate”, in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer.

(Compiled by Taxguru Team based on inputs from Income Tax Department Website)

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