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News INCOME TAX

  • Jul 09, 2024
  • Reporting foreign income in income tax return: How to report foreign income, equity share in ITR form

    Income-tax Return (ITR) Forms 2 and 3 contain Schedule FA for reporting foreign assets, income and beneficial ownership. This Schedule is often considered one of the most challenging sections to fill out in the ITR form.
    Schedule FA was introduced to address tax evasion and money laundering and has been essential to the ITR forms since FY 2011-12 (AY 2012-13). In this schedule, individuals (ordinarily resident in India) must provide information about their foreign assets and income, regardless of whether the income is taxable in India. Non-resident individuals (NRIs) or Not-ordinarily resident individuals (NOR) do not need to make any disclosures in this Schedule.

    Individuals with foreign assets and income are required to use either ITR 2 or ITR 3 forms to file their tax returns, as Schedule FA is available in these forms.