Foreign Assets in ITR: Miss Schedule FA, Pay ₹10L

If you own foreign stocks, mutual funds, or bank accounts, you must declare them in Schedule FA of your ITR. Missing this disclosure can trigger heavy penalties — even if you earned zero income from those assets.

Here's what happened: All Resident and Ordinarily Resident (ROR) taxpayers must disclose foreign assets in Schedule FA, even if no income was earned from them in FY2025-26.. Foreign assets include overseas bank accounts, foreign stocks, ESOPs from MNCs, US ETFs via platforms like Vested or INDmoney, and real estate held abroad.. The Black Money Act, 2015 prescribes a penalty of ₹10 lakh per year of non-disclosure for concealed foreign assets, plus potential prosecution in serious cases..

What you should do: Check your investment apps — if you hold US stocks, foreign ETFs, or global mutual funds, confirm you are filing ITR-2 or ITR-3, not the basic ITR-1.. Gather account statements for all foreign assets as on December 31, 2025 (the relevant date for Schedule FA), including account numbers, peak balances, and income details.. Disclose even dormant or zero-balance foreign accounts — the penalty applies to non-disclosure regardless of whether the account was active or profitable..

ESOPs from your MNC employer count as foreign assets the moment they vest. Even unvested options may need reporting — check with a CA before filing.