Foreign assets disclosure

Residence and the reporting period come first

The foreign-asset obligation depends on the residence category and the return applicable to the period. We establish whether you are resident and ordinarily resident, resident but not ordinarily resident or non-resident before selecting schedules. A passport, overseas address or bank’s NRI label does not replace the income-tax residence test. Income Tax Department residence guidance.

AY 2026–27 reports FY 2025–26 under the earlier Act; Tax Year 2026–27 covers income from 01-04-2026 under the new Act. We use the instructions for the actual return year when determining asset-reporting dates and conversion requirements. The Department’s foreign-disclosure guidance explains Schedules FA, FSI and TR and warns against using ITR-1 or ITR-4 where foreign-asset disclosures are required. Official foreign-disclosure guidance.

For the new Rules, the foreign-asset, signing-authority and foreign-income exclusions from the simpler forms must be checked. An individual generally uses the applicable ITR-2 or ITR-3 route according to the income profile. Income-tax Rules, 2026, rule 164.

Build the inventory before filling the schedules

We identify foreign accounts, shares, property, other financial interests and any relevant trust or insurance interest. Accounts closed during the reporting period are included in the review. A dormant or low-balance account should be disclosed to the adviser so its treatment can be decided from the rules.

For each item, the working records the holder, country, institution, acquisition or opening date, relevant balances or values, income and disposal details. Signing authority is recorded independently from personal ownership. For employer equity, grant, vesting, holding and sale records help separate employment income, asset ownership and capital gains.

Statements often follow a foreign calendar or show a different currency. We identify the required reporting dates, retain exchange-rate support and reconcile the income appearing in the asset statement with salary, interest, dividends or sale proceeds reported elsewhere. The same receipt should not be counted twice because two statements describe it differently.

What you provide and receive

Start with the countries involved, travel history and categories of overseas holdings. For the detailed work, supply account and investment statements, employer-equity records, property or interest documents, foreign income and tax evidence, and earlier Indian return schedules.

You receive the residence working, foreign-asset register, schedule mapping and income or foreign-tax reconciliation. The file identifies missing statements and records needed for conversion or ownership. We prepare and file the annual return and supported foreign-tax-credit claim, coordinate verification and follow up on processing. If an earlier omission is identified, we assess and carry out the legally available correction after your approval. The engagement records the years and assets covered.

A resident other than not ordinarily resident who holds the specified foreign assets or signing authority can have a return obligation irrespective of income or loss under section 263(1). Income-tax Act, 2025, section 263.

Foreign disclosures can have consequences beyond a routine return mismatch. If an earlier asset or income was omitted, we review the period, available remedy and relevant law before recommending a correction. We do not assume that a small balance removes the reporting requirement or that every omission can be repaired through the same filing route. Income-tax Act, 2025 filing provisions.

Timing and coordination with overseas advisers

Collect statements while the foreign accounts and employer systems remain accessible, especially before moving countries or leaving employment. A closed account may be harder to document later. The working timetable depends on residence evidence, historic statements and the amount of information needed from foreign advisers.

Where another adviser prepares an overseas return, we agree an income-by-income reconciliation and identify differences in period, currency and tax treatment. Where an overseas filing is also required, the appropriately qualified professional handles it for the jurisdictions identified in the engagement. TheTaxCo’s Indian working records which foreign documents support the Indian position.

Questions about less obvious holdings

My account earned nothing. Should I mention it? Yes. Income and asset disclosure are separate tests. Supply the account details and reporting-period statements.

I only have authority to sign for my employer’s overseas account. Include that authority in the inventory. We assess it separately from assets you own.

I moved back to India during the year. Provide current and earlier travel history. The residence category can affect both the income scope and the disclosures required.

I sold or closed everything before year-end. Keep the acquisition, disposal and closure records. The reporting instructions may require information about holdings during the relevant period, not only the final balance.

Related services

• NRI taxation and treaty relief

• Personal income-tax returns

• Capital gains

Email TheTaxCo, message us on WhatsApp or book a call. Share your countries of residence, the return year and a short list of foreign account or asset types. Detailed identifiers and statements can follow through the agreed channel.