# Foreign Assets, Property & Bank Accounts for Residents

> A resident Indian may keep foreign assets acquired while living abroad, inherited from someone abroad, or bought under LRS — FEMA Section 6(4) protects assets acquired as a non-resident. Every resident and ordinarily resident taxpayer must report all foreign assets in Schedule FA of the ITR, even without income. Non-disclosure can attract a ₹10 lakh penalty under the Black Money Act, except where non-property foreign assets total ₹20 lakh or less.

Practice: FEMA & RBI Compliance — https://www.industax.com/services/fema-rbi/

Returning NRIs often keep foreign bank accounts, retirement plans, shares and homes. These can be held, but income from them is taxable in India once you become ordinarily resident, and Schedule FA must list each asset by calendar year.

Inheriting a foreign asset is allowed whether the deceased was resident abroad or in India; the key steps are probate in the foreign country, local estate-tax checks, and correct Indian disclosure and tax on later income or sale.

## Key facts

| Item | Detail |
| --- | --- |
| FEMA protection | Section 6(4): assets acquired while non-resident or inherited |
| New acquisitions | Under LRS within USD 250,000 a year |
| Disclosure | Schedule FA for resident and ordinarily resident taxpayers |
| Black Money Act penalty | ₹10 lakh; not where non-property foreign assets ≤ ₹20 lakh |
| RNOR | Schedule FA not required |

## Who needs this

- Returning NRIs with foreign assets
- Employees holding foreign RSUs or ESPP shares
- Residents inheriting assets abroad
- Residents owning foreign property or bank accounts

## What's included

- FEMA status of each asset
- Schedule FA preparation
- Foreign income and tax-credit reporting
- Inheritance and sale planning

## Documents

- Foreign account and brokerage statements
- Property documents abroad
- Inheritance / probate papers

## Process

1. **Inventory** — Every foreign asset and its origin listed.
2. **Assess** — FEMA and tax position confirmed.
3. **Disclose** — Schedule FA and foreign income filed correctly.

## Also covers

- **Foreign property** — Buying, holding and inheriting property abroad.
- **Foreign bank account advisory** — Keeping, opening and reporting accounts abroad.
- **Inheritance of foreign assets** — Probate, estate-tax checks and Indian reporting.

## FAQs

### Can I keep my US bank account after returning to India?

Yes, assets acquired while non-resident can be held under Section 6(4) of FEMA, but they must be disclosed in Schedule FA once you are resident and ordinarily resident.

### I forgot to report my RSUs in Schedule FA. What now?

File a revised or updated return where the time limit allows; the Black Money Act penalty doesn't apply where non-property foreign assets total ₹20 lakh or less.

### Can a resident inherit property abroad?

Yes, from a resident or a non-resident; you can hold it and must report it in Schedule FA.

## Official sources

- RBI — Master Directions (Foreign Investment, Overseas Investment, LRS): https://www.rbi.org.in/Scripts/BS_ViewMasterDirections.aspx
- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/fema-rbi/foreign-assets-fema
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.