Own foreign stocks or MNC Esops? Omit them from ITR at your peril
₹2.5-lakh tax exemption limit but own foreign assets must file an ITR to declare these assets. Also read | Income tax deadline looms: Know your ITR forms to avoid penalties Foreign stocks and stock options are to be disclosed in Schedule FA every year that the taxpayer holds them, and not just when they are sold. Failing to do so could attract hefty fines and prosecution under the black money law.
Deepak Kakkar, a chartered accountant in Delhi and senior manager at Jaikumar Tejwani & Co LLP, said the information exchanged between India and other countries under the Tax Information Exchange Agreements (TIEA) is investigated by the Foreign Assets Investigation Unit (FAIU). “It sends summons under Section 131(1A) of the Act to ask for information related to foreign assets. Non-disclosure may result in a levy of tax, penalty, and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015," he said.
Foreign assets are to be declared in Schedule FA even if they are declared separately in Schedule AL (assets-liabilities) by taxpayers whose income exceeds ₹50 lakh. Also read: Understanding Schedule AL: Declaring assets for income above ₹50 lakh The holding period of foreign assets to be declared in ITR forms is the previous calendar year. So, when filing your ITR for the assessment year (AY) 2024-25, you'll need to declare foreign assets held from 1 January 2023 to 31 December 2023.
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