Unable to report foreign assets in revising tax returns? Here is what to do

Tax department advises taxpayers attempting to disclose foreign assets in revised returns to switch from ITR-1 or ITR-4 to the correct forms (ITR-2 or ITR-3) by December to ensure compliance

Some taxpayers who filed their returns early in the assessment cycle and are now trying to update the information to report foreign assets and income face an issue: The forms for revised returns do not have such sections. The Income Tax Department, in a post on X, explained the issue and what taxpayers should do.

Why foreign asset schedules are missing

 

If an Income Tax return was originally filed using ITR-1 or ITR-4, you will not be able to see Schedule FA (Foreign Assets), Schedule FSI (Foreign Source Income) or Schedule TR (Tax Relief) while revising information. The forms do not include the sections required for reporting foreign holdings.

 

The problem is relevant for those who have:

• Overseas bank accounts
• Foreign investments or financial interests
• Immovable property abroad
• Income from any foreign source

Such assets or income streams cannot be disclosed in ITR-1 or ITR-4, which is why the schedules are absent when attempting to revise returns.

What the Income Tax Department said

 

In its post, the department noted that taxpayers who cannot find Schedule FA, FSI or TR during revision are “using the wrong form for reporting foreign assets/income”.

 

It advised taxpayers to:

 

-Switch to the correct ITR form while revising,

 

-Report all foreign income and assets accurately, and

 

Ensure compliance before December 31, 2025, the last date for filing a revised return for AY 2025–26.

 

The post was issued as part of the NUDGE 2.0 campaign, which encourages taxpayers to check their disclosures and correct any gaps.  ALSO READ | New ITR forms under 2025 Income Tax Act to be notified before FY28: Govt

Which ITR form you must use now

 

To report foreign assets or foreign-sourced income, the revised return must be filed using:

 

ITR-2: For individuals without business or professional income, or

 

ITR-3: For individuals who do have business or professional income.

 

Once you select the correct form, Schedule FA, FSI and TR will become visible automatically.

Why accurate reporting matters

 

Proper disclosure of foreign assets is mandatory under international information-sharing frameworks such as Common Reporting Standard and Foreign Account Tax Compliance Act. Filing the correct schedules ensures that taxpayers:

 

Make full and accurate disclosure of overseas assets and income

 

Avoid scrutiny, penalties or non-compliance risks, and

 

Claim available foreign tax credits and treaty reliefs where applicable.

 

Switching to the correct form and revising the return before the deadline ensures that foreign holdings are properly recorded and that the taxpayer remains fully compliant.