# Foreign Asset Disclosure (Schedule FA) for NRIs & Returning NRIs

> Schedule FA — the foreign asset schedule in the ITR — applies only to residents who are ordinarily resident (ROR); NRIs and RNORs don't file it. Once you become ROR, every foreign bank account, share, RSU, fund, insurance policy and property held at any time during the relevant calendar year must be reported, even with no income. Missing it can attract a ₹10 lakh penalty under the Black Money Act, though the penalty doesn't apply where the aggregate value of non-immovable assets is up to ₹20 lakh.

Practice: NRI Tax Services — https://www.industax.com/services/nri-tax/

Returning NRIs often miss Schedule FA in their first ROR year because the reporting period is the calendar year, not the financial year — for FY 2025-26, it covers assets held in calendar year 2025.

We inventory foreign assets, convert values at the prescribed rates, report income in the schedules for foreign income and claim foreign tax credit where tax was paid abroad. Earlier omissions are corrected through revised or updated returns.

## Key facts

| Item | Detail |
| --- | --- |
| Who files | Ordinarily residents (ROR) only |
| Period | Calendar year ending in the financial year |
| What | Foreign accounts, shares, RSUs, funds, insurance, property, signing authority |
| Penalty | ₹10 lakh under the Black Money Act; not applicable if aggregate non-immovable assets ≤ ₹20 lakh |

## Who needs this

- Returning NRIs in their first ROR year
- Residents with foreign RSUs, ESPPs or bank accounts
- Residents who missed Schedule FA earlier

## What's included

- Foreign asset inventory
- Schedule FA, FSI and TR preparation
- Foreign tax credit claim
- Correction of earlier omissions

## Documents

- Foreign bank and brokerage statements
- RSU/ESPP statements
- Foreign property documents
- Foreign tax returns

## Process

1. **Inventory** — All foreign assets listed by calendar year.
2. **Value** — Peak and closing values converted.
3. **Report** — Schedules filed; credit claimed.

## Also covers

- **Foreign income reporting** — Schedules for foreign income and tax relief.

## FAQs

### Do NRIs need to fill Schedule FA?

No. Only residents who are ordinarily resident must report foreign assets.

### Does a dormant foreign bank account need to be reported?

Yes, if you held it at any time during the calendar year, even with no balance or income.

### Which period does Schedule FA cover?

The calendar year ending in the financial year — for FY 2025-26, assets held at any time between 1 January and 31 December 2025.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/nri-tax/nri-foreign-asset-disclosure
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.