NRI Guide: Reporting Foreign Assets in India — What You Must Declare

India's Black Money (Undisclosed Foreign Income and Assets) Act 2015 and the enhanced ITR Schedule FA (Foreign Assets) have dramatically increased the compliance obligations for Non-Resident Indians. Failure to disclose foreign assets can attract penalties of ₹10 lakh per asset, per year — regardless of whether any tax is owed.

Who Must File Schedule FA?

Any person who is a Resident and Ordinarily Resident (ROR) in India during the financial year MUST file Schedule FA if they hold any foreign asset. This applies to:

• Returning NRIs who became ROR — foreign accounts opened while abroad must still be reported
• Indian residents with foreign bank accounts (even dormant ones)
• Individuals with foreign equity holdings, ESOPs from foreign employers, or mutual fund investments abroad
• Those with foreign real estate, even if inherited
• Residents who are beneficiaries or trustees of foreign trusts

What Exactly Must Be Reported in Schedule FA?

• Foreign bank accounts: Account number, name of bank, country, peak balance during the year
• Foreign equity & debt: Name of entity, country of incorporation, date of acquisition, cost and fair value
• Foreign immovable property: Address, acquisition date, cost, and ownership percentage
• Foreign trusts: Name, country, trustee details, beneficiary details
• Any other capital asset outside India: Description, location, cost, and fair market value

The NRE Account Myth

A very common misconception is that NRE accounts do not need to be reported because they are tax-exempt. This is incorrect. NRE accounts held in India do not need to appear in Schedule FA, but any foreign accounts (including accounts in your country of residence) must be reported in Schedule FA once you become a Resident.

"We handle Schedule FA filings for NRI clients across the US, UK, UAE, and Singapore. The key is meticulous documentation and timely filing — not waiting to see if the tax department notices."