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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10 responses to “ITR and Disclosure of Foreign Assets & Income from any source outside India'”

  1. karungop says:

    The 1st holder in the foreign bank account is an NRI. Later an Indian resident relative is added as joint holder Does the Indian resident relative have to declare the bank account in his IT return?

  2. K.S. GAHUNIA says:

    For FA understanding the terminology in some columns are not clearly understood by most layman.
    neither the help line could give proper answer. Then their reply is to consult a CA.

    The idea is for citizen to be able to file their own ITR by simplification of forms but it seems the contrary.

  3. saurabh0908 says:

    What does Schedule where offered means? I am also not able to understand what is ‘Item number of schedule’? Can you elaborate on this?

    • vikas maingi says:

      Hello Saurabh, Did you get the answer to your query?
      I’m also facing same issue. Could you please help me out on this

  4. Niral Gangar says:

    The ESOP that you receive in India are for your services rendered to Indian company. The only difference is that you receive it by way of foreign shares. This does not make it foreign income

    The answer to your second question is Yes

  5. JK says:

    This bill only meant for hard working middle class professional or small business guy working overseas and already paying taxes to foreign govts but this corrupt FEKU govt wants to squeeze them only. Not politicians and their Mafia, the Bharat JALAO party or their mafia donors or gangs that launder the money of these political black money like 1000 crore that Bharat Jalao-deshdrohi Party spent on last general elections? What is the source of all that black money/ All the black money from Top realtors and their business friends giving them MAT breaks and all tax breaks to FII’s and their gang and mafia laundering friends with whose help all this black money makes U-TURN and comes back as Participatory Notes into stock market and then this very laundered money then become money white as snow and then ministries is showering red carpet for these crooks to invest etc.. it is all a corrupt political game (like why it took so many decades to catch Dawood etc… / ever wondered? with all the intel and military machinery etc../ well ?) I understood when they talk about DTAA / Double tax avoidance agreement. DTAA is meant only for hard working Indians in foreign countries so this atrocious govt’s idea is to squeeze those people who are not well placed to fight this corrupt govt machinery. The average middle class professional and small business enterprenuer or start ups folks. They are easy targets for this ‘business friendly’ govt. Feku govt is all for big business capitalists, opportunist foreign investors, Suckers of rich western capitalist countries and catering to their agenda… I wonder what is the definition of a TRAITOR. Is it not a Govt tyrannizing and squeezing the average middle class Indian and be sellouts to a foreign agenda?

  6. nikhil says:

    I also have the same query as Bobby. Please help so that I can fill the ITR form correctly.

  7. bobby says:

    I work for an MNC in India. In Jan’15, 100 shares from my parent company in US were vested and 63 shares were paid to my morgan stanley account. Value of 37 shares was held as withholding tax in USD. My Indian company showed the value of 100 shares as perquisite in INR in form 16 and is hence included as taxable income in India. Double tax was not deducted as US company paid the amount to Indian company as part of internal transaction. My questions are :

    1. Do I need to show the perrequisite value as Foreign income in ITR?
    2. Do I need to show the value of shares vested (63 shares) as Foreign assest in ITR?

  8. dr.g.balakrishnanha says:

    Great.
    Whether MPs/MLAs/corporators are exempted from this new rule by MOF, if not what circulars are issued by CBD/MOF.

    Whether black moneys generated by MPs/MLAs/corporators are exempted by any MOF circular?

    If not how the MOF would treat these worthies’ foreign assets? is there any TDS regulation on black moneys after all so many public servants too have black funds/foreign assets under their own names or under benami names,how MOF would treat after all every one as fundamental right bogey!

    hope tax guru would get hold and publish i believe,as tax guru is indeed a Guru to every one, most venerated!

  9. B.Chackrapani Warrier says:

    Read. Thanks.

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