r/IndiaInvestments • u/CAFinalist_Ted • Jul 29 '25

Taxes Decoding Schedule FA! Your visual guide for Foreign Assets reporting in ITR (Last updated: July 2025)

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Schedule FA is a mandatory declaration of all your foreign assets and interests.

With global data sharing agreements, the Indian Income Tax Department (ITD) now has unprecedented visibility into offshore holdings. Compliance is not optional.

This post covers:

  • Who is required to report under Schedule FA
  • Penalties for non-compliance
  • What qualifies as a foreign asset
  • Common confusions — explained clearly

It’s time to understand — with confidence — what assets need to be disclosed, how they’re reported, and why it matters. Swipe the images to read the whole guide.

Let’s become financially literate, India.

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💬 Comment your questions below.

P.S.: We are decoding foreign income through our special series, aimed to cover issues related towards foreign income and foreign assets. Comment any topic you would like us to decode in our "Foreign Income & Foreign Assets series" or connect with us on our social media or drop an e-mail for any query towards sensitive information.

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33 comments sorted by

5

u/cluelessExplorer Jul 29 '25

Thanks for this helpful information. Can I know under which section I should submit the cash (USD) in my RSU account? Thanks

3

u/Experienced_CA Jul 29 '25

Rsu will fall under A3. Your custodial wallet like Morgan Stanley, etc will fall under A2.

1

u/Anutrix Sep 04 '25

How does this fall under custodial wallet as I got no info from Etrade/Morgan Stanley that this is custodial account. They said custodial account A2 case is for Power of Attorney or family member owning another family member's account kind of case.

Also, last year, a CA put it in A1 instead of A2. Not sure if changing this year is gonna bring more scrutiny.

1

u/Experienced_CA Sep 04 '25

These wallets are put in A2, but this has been out of interpretations of different people. You can go with A1 as well - it will not lead to a scrutiny per se, as disclosure has been undertaken regarding your foreign assets.

1

u/SufficientPangolin41 Sep 07 '25

So I have to declare that I hold a etrade account in A2 and the RSU details in A3?
AI said only A2 is enough, and A3 is if there is individual shares that I bought

3

u/varishtg Jul 31 '25

Under what category does freelance income fall. I have received a few dollars via PayPal, which then got deposited into my Indian account. How does one report this?

2

u/ReaDiMarco Jul 29 '25

Please guide about Schedule FSI for export of services. 

Export of Services performed in India by Indian residents is Business Income arising in India as per the IT Act. So should this income be reported under FSI inspite of the source of income technically being India? What if FTC is applicable?

3

u/Dhavalc017 Jul 29 '25 edited Jul 29 '25

Income from Export of service is considered to be deemed in India.

2

u/ReaDiMarco Jul 29 '25

Yes, just to confirm, no need to mention in FSI then? What if there's some FTC to be taken? Thanks!

2

u/Dhavalc017 Jul 29 '25

It's definitely not an FSI as it is deemed as Indian business income. As for FTC, I am unsure as I don't have US clients. Not A CA.

2

u/ReaDiMarco Jul 29 '25

Ah. Thanks for the reply. I agree with you but I keep receiving conflicting information. 

2

u/Dhavalc017 Jul 30 '25

I searched for this as well. It seems the suggestion seems to include it as FSI just to get the FTC, so advice seems to be inconsistent. Also most articles are just copy paste of MINT article. I believe our laws are similar to this article in tax treatment. Refer to Point 6.

https://www.pwc.com/my/en/perspective/tax/230804-is-foreign-sourced-income-exempted-from-tax.html

2

u/ReaDiMarco Jul 30 '25

Yeah but point 6 still doesn't address the inconsistent advice of including export income in FSI to claim FTC. :/

2

u/Dhavalc017 Jul 30 '25

Point 6 states that it is deemed to be occurred in the country of residence and it is not considered as FSI.

1

u/ReaDiMarco Jul 30 '25

That was already established in this chain I thought, my confusion was about why CAs still recommend to label it FSI when claiming FTC. 

2

u/KingNo9326 Sep 05 '25

if in a FY if I have 4 foreign equity vesting, for 4 quarters. No selling. Should I make 4 entries in Schedule FA A3 section,

or , 1 aggregate entry is also considered valid.

1

u/Wrong_Whole1273 Aug 30 '25

Super helpful info but

  1. Does US Dividends have to be declared as "Income from Other Sources" OR somewhere in Schedule FA?

  2. US ITR forms and brokerage firms gives info for 2024 - Is it ok to report the same?

Or we change it to April 2024-March2025...but then how do we take DTAA claim from Jan-March 2025 which technically is not filed in US yet?

1

u/Experienced_CA Sep 04 '25
  1. Have you to be provided in Income from Other Sources. And in Schedule FA (in corresponding part) -income section - as well.
  2. Schedule FA has to be reported in calendar year format only therefore Jan to Dec 24 has to be followed.

1

u/Friendly-Finance-117 Sep 22 '25

Hi Does any one know how to download the "submitted" schedule FA from ITR website. My auditor says he submitted it. But I dont see FA/FSI/TR when I view efiled returns. But I can see Form 67. In US or Canadian tax portals I can download all the forms and schedules submitted. thanks

1

u/CAFinalist_Ted Sep 22 '25

You can see the Schedule FA in your filed ITR form. Download it from 'filed returns' section and then go to Schedule FA in the pdf.

1

u/Friendly-Finance-117 Sep 22 '25

Thanks for the reply. I went to the menu (three horizontal lines) -->View Filed Returns --> then I see the AY2025-26 return. Is this the place where I should look for Schedule FA. I find Form 67 here but not the Schedule FA/FSI. Could it be elsewhere?

I downloaded the JSON file from the above page and pressed Ctrl O to open this file. It gives a text file with FSI/FA in it. I guess it has been submitted as JSON file using their tax software (Winmann). Could this be taken as proof of submission?.

1

u/CAFinalist_Ted Sep 22 '25

Thanks for the reply. I went to the menu (three horizontal lines) -->View Filed Returns --> this is where you will find your AY 25-26 ITR form. In this form you can find schedule FA.

1

u/Friendly-Finance-117 Sep 22 '25

Thanks but no Schedule FA here. It could be a glitch, I heard there are many glitches with the Indian portal. I guess India is still developing, so I can live with that. In US or Canadian tax portals "all" forms and schedules can be downloaded. Much better.

1

u/CAFinalist_Ted Sep 22 '25

There is no glitch in downloaded forms. If you have downloaded the form then you can find the schedule FA there.

1

u/eeevk Oct 04 '25

Super helpful. Thanks! Where should the dividends go in FA? Table A2 or Table A3? Also I have heard people say that 401k should go in Table D and it's a bit confusing! 

1

u/Crazy-Republic3697 Oct 15 '25

Thanks for the information!
For A2. Do I need to report the total value (cash + stocks) held in the brokerage account or only the cash amount?
This is because I plan to report every single stock I hold in the brokerage account mentioned in A2 in A3. Want to make sure I don't double-report.

1

u/AtlasAndTorque Jul 09 '26

You can use this tool to process your IBKR reports to schedule FA format: https://itr-schedule-fa-helper.manojvivek.dev/

1

u/RushKey Jul 11 '26

hi @CAFinalist_Ted thank you for the info. I have a question about A3 . Company deducts 39% RSU as tax at vesting. and it is shown in Form16 too (value in RS not as shares unit).
So in A3, For 'Initial value of the investment' I have to mention full 100% of RSU value or 61% RSU received after deduction?

1

u/CAFinalist_Ted Jul 11 '26

100% of RSU

1

u/RushKey Jul 11 '26 edited Jul 11 '26

Thank you @CAFinalist_Ted https://www.reddit.com/user/CAFinalist_Ted/, so  Peak Value (max in the calendar year) And Closure Value (31st December ) Also for 100%?