Disclosing Foreign Assets and Income Using Schedule FA, FSI and TR

Disclosing Foreign Assets and Income Using Schedule FA, FSI and TR

If you are an Indian resident and have any income from outside India or own any foreign assets, it is very important to report them in your Income Tax Return (ITR). The Income-tax Act, 1961, requires the resident taxpayers to disclose their foreign assets and income in their ITR under schedules FA, FSI, TR, and Form 67.

To report foreign assets, the taxpayer can do the same in Schedule FA (Foreign Assets) of their ITR. Schedule FSI (Foreign Source Income) is for reporting income from foreign sources. If you have paid taxes abroad, you can claim credit in India using Schedule TR (Tax Relief) and Form 67.

If you do not report the foreign assets and income in the above schedules of your ITR, then you might have to face a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The step-by-step guide to filling the FSI, TR and FA Schedule in ITR is given on the Income Tax portal to help taxpayers report their foreign assets and income easily.