Heads up. Rules and dates change. Confirm the details with a chartered accountant before you file.
What Schedule FA is
Schedule FA is the part of your income tax return where you disclose foreign assets. It’s a disclosure schedule, not a tax schedule. It sits in ITR-2 and ITR-3, so if you hold foreign shares you can’t file ITR-1 or ITR-4.
Who needs it
Residents of India who held a foreign asset during the reporting window, including vested RSU shares of a US-listed company. Guides report no minimum value. Unvested RSUs aren’t reported.
The calendar-year window
Schedule FA follows the calendar year, not the Indian financial year. For the return for AY 2026-27 (income of FY 2025-26), you report assets held at any time between 1 January and 31 December 2025. That includes shares you sold during the year.
What you report
For each holding, the schedule asks for things like the country, the company, the date you acquired the shares, their initial value, the peak value during the year, the closing value, and any income or sale proceeds. Values are in rupees, converted at SBI TTBR rates. Check the current ITR utility for the exact fields and the table to use for foreign equity.
Why it matters even if you owe no tax
Paying tax at vesting doesn’t remove the duty to disclose. Several guides report that missing Schedule FA can attract penalties under the Black Money Act, even when no extra tax is due. Talk to a CA if you missed it in earlier years.
Foreign tax credit and Form 67
If foreign tax was withheld on income such as dividends, you can claim a credit through Form 67. Sources disagree on timing, with some saying it must be filed before your return and others pointing to a later deadline, so ask your CA.
Missed it?
One CA firm reports 31 December 2026 as the belated-return deadline for AY 2026-27. Dates and options such as updated returns need checking, so confirm with a CA. Keep an eye on the tax calendar.