How to Report Schedule FA in ITR for Foreign Assets in 2026

Last updated: 26 October 2026

Quick Answer: Report each foreign asset held at any time in calendar year 2025 in Schedule FA of the AY 2026-27 ITR-2, ITR-3, ITR-5, ITR-6 or ITR-7. Residents, other than not ordinarily resident, complete it, with a visa-holder exception. An adviser such as HSAG Consulting, which files income tax returns involving cross-border taxation, can prepare the schedule with the return.

Schedule FA in ITR is the part of the Income Tax Return where a resident reports foreign assets and income from any source outside India. For the return covering FY 2025-26, assessed as AY 2026-27, the reporting period is calendar year 2025 and the tables run from A1 to G. A missed or inaccurate foreign assets disclosure in ITR can be penalised under the Black Money Act, 2015.

How does the calendar year rule decide what you report?

Schedule FA income tax reporting runs on the calendar year ending 31 December within the financial year, while the rest of the return runs on the financial year itself. Each table covers assets held at any time during that year, according to the department's step-by-step guide.

The Schedule FA calendar year works in both directions. Shares bought in January 2026 do not appear in the AY 2026-27 return, because they were not held during 2025. An account closed in February 2025 does appear, because it was held at some point during 2025.

How do you fill each table from A1 to G?

Each table asks for the country name and code, the nature of ownership, the identifying details of the asset, its value and the income derived from it. Where income is offered to tax in India, the schedule, amount and item number where it is offered must also be indicated, as the department's page on the schedule sets out.

Every peak balance, value of investment and amount of foreign income is converted into rupees at the telegraphic transfer buying rate of that currency on the relevant date. That date is the date of the peak balance, the date of investment, or the last day of the calendar year.

What goes into tables A1 and A2 for accounts?

Table A1 covers foreign depository accounts and table A2 covers foreign custodial accounts, in each case including any beneficial interest. Both ask for the peak balance during the year, the closing balance and the gross amounts paid or credited.

How does a Schedule FA A3 example work?

Table A3 covers foreign equity and debt interest held in any entity, including beneficial interests. Its row asks for the initial value of the investment, the peak value, the closing value, the total gross amount paid or credited on the holding and the total gross proceeds from any sale or redemption during the period. A filer who bought foreign shares for an illustrative ₹5,00,000 and held a closing value of ₹5,80,000 enters each figure in its own column. An illustrative dividend of ₹18,000 goes into the gross amount column, while illustrative sale proceeds of ₹2,00,000 go into the separate column for proceeds from sale or redemption.

Table A4 covers foreign cash value insurance or annuity contracts, with the cash or surrender value at the year end and the gross amounts paid or credited during the year.

What do tables B to G cover?

Table B covers financial interest in any entity outside India. That includes owning record title to a financial account, a partnership interest in profits or capital, a beneficial interest in a trust and any voting power or equity interest in another entity. Each row asks for the investment value at cost, the income accrued and the portion chargeable to tax in India.

Table C covers immovable property outside India and table D covers other capital assets held abroad, excluding stock-in-trade and business assets. Table E covers foreign accounts in which the filer holds a signing authority that tables A1 to D do not already capture. Table F covers interests in trusts created outside India as settlor, trustee or beneficiary, and table G covers any other foreign income not already reported.

How do you file Schedule FA in ITR 2 step by step?

The department's guide sets this sequence for reporting Schedule FA in ITR online.

1. Confirm residential status. Only a resident other than not ordinarily resident completes the schedule. An individual who is not an Indian citizen and is in India on a business, employment or student visa need not report an asset acquired in a non-resident year, if it yields no income in the current year.
2. Choose a form that carries the schedule. ITR-1 and ITR-4 do not contain it, so a resident reports foreign assets in ITR-2, ITR-3 or another form that carries it. A resident with business income files ITR-3, and where the business also meets the tax audit applicability tests of section 44AB of the Income-tax Act, 1961, its return falls due later than other individual returns.
3. Collect calendar year statements. Use statements for every account and holding as at the calendar year end.
4. Enter one row per asset. Use the columns of the matching table, as described above.
5. Complete Schedules FSI and TR. Report the foreign income and any relief claimed for taxes paid outside India.

The FY 2025-26 return stays entirely under the Income-tax Act, 1961 even when filed after 1 April 2026, as the department's return FAQs on the e-filing portal confirm.

From tax year 2026-27, section 263 of the Income-tax Act, 2025 contains the provisions relating to the filing of returns. Its clause (1)(a)(ix) covers a resident, other than not ordinarily resident, holding an asset or signing authority outside India at any time in the tax year, and a beneficiary, unless the asset's income is included in its holder's income.

How do Schedules FSI and TR work alongside the foreign asset tables?

Schedule FSI reports the income that accrues or arises outside India, and that income must also appear in the head-wise computation of total income. Schedule TR then summarises, country by country, the tax relief claimed for taxes paid outside India. Its columns cover the country code, the taxpayer identification number, the tax paid, the relief available and the provision relied on, namely section 90, section 90A or section 91.

For the FY 2025-26 return, the foreign income and the foreign tax credit must also be reported in Form 67 to claim the credit in India, as the department's guide states. A filer who shows the asset in Schedule FA, income tax paid abroad in Schedule TR and the income in Schedule FSI, but skips Form 67, risks losing that credit.

Where that credit leaves tax already deducted or paid in India above the final liability, the return shows the excess as a refund due. HSAG Consulting handles income tax refund claims, including delays and mismatches, and its note on strategic refund management covers tracking a pending refund.

How is an error in a filed return corrected?

An error in the schedule is corrected through the return, not through a separate form. For AY 2026-27, a revised return under section 139(5) of the Income-tax Act, 1961, as substituted by the Finance Act, 2026, can be filed before 31 March 2027 or before the assessment is completed, whichever is earlier. That sub-section makes the revision subject to section 234-I, which the same Act inserted as a fee for furnishing a revised return. A person who filed no return can file a belated return under section 139(4) by 31 December 2026 or before the assessment is completed, whichever is earlier. An updated return falls under section 139(8A).

From tax year 2026-27, section 263(5) of the Income-tax Act, 2025 governs a revised return, and section 263(6) an updated return, available within forty-eight months from the end of the financial year succeeding that tax year. An updated return cannot reduce the tax liability or create or increase a refund. Nor can it be a return of loss, unless a loss return filed by the due date becomes a return of income or a smaller loss, under section 263(6)(b)(i) as substituted by the Finance Act, 2026.

The Schedule FA penalty rules give the correction its weight. Under section 42 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the Assessing Officer may direct a penalty of ten lakh rupees. It applies to a resident (other than not ordinarily resident) who held a foreign asset, was a beneficiary of one, or had foreign income, and failed to furnish the required return before the end of the relevant assessment year.

Where the return was filed but the disclosure is wrong, section 43 of the same Act applies. A resident other than not ordinarily resident who fails to furnish any information, or furnishes inaccurate particulars, about a foreign asset or foreign income in that return faces the same ten lakh rupees.

Both sections carry the same carve-out, substituted by the Finance (No. 2) Act, 2024 with effect from 1 October 2024. Neither applies to an asset or assets, other than immovable property, whose aggregate value does not exceed twenty lakh rupees. Immovable property outside India attracts both provisions whatever its value. The Finance Act, 2026 inserted the same carve-out, from the same date, into sections 49 and 50, which provide prosecution for a wilful failure to file the return or to disclose the asset.

Can a missed foreign asset be declared under FAST-DS 2026?

Yes, until 31 December 2026. The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, in sections 130 to 144 of the Finance Act, 2026, opened on 16 August 2026, and a declaration is made online in Form 1. It is open to a person who was resident in India in the year the income arose or the asset was acquired. That person must have filed no return, left the asset or income out of a return, or had it escape assessment.

• Undisclosed foreign asset or income, up to ₹1 crore in aggregate: tax of 30% on the asset's value at 31 March 2026 and on the income, plus an amount equal to that tax.
• Asset worth up to ₹5 crore, bought while non-resident or from income already taxed, but left out of the Schedule: a fee of ₹1 lakh.

Payment is due within two months after the month the order is received, or two further months with 1% simple interest a month, and is not refundable. A valid declaration paid in time gives immunity from further tax, penalty and prosecution under the Black Money Act, 2015 for the declared asset or income, for years up to the one ending on the valuation date. The scheme excludes proceeds of crime under money-laundering proceedings and years already assessed under that Act.

Common Mistakes in Schedule FA Reporting

• Reporting the financial year instead of the calendar year. The asset columns take values at the calendar year end, not at the financial year end.
• Omitting dormant or closed accounts. An account held at any time during 2025 needs a row even if its closing balance is nil.
• Skipping Form 67. For FY 2025-26, the department's guide ties the foreign tax credit to reporting the income and the tax in it.
• Forgetting Schedule AL. Assets duly reported in the foreign asset tables may still need a row in Schedule AL of the same return, which applies to an individual or HUF whose total income exceeds ₹1 crore.

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