Foreign assets mean tax liabilities: Things to mind while filing returns

Penalties for non-disclosure or inaccurate disclosure of these details can be severe, say experts

Any resident Indian holding equity or debt interest in an entity abroad has to disclose the investment in their income tax return (ITR). Indian law requires the mandatory filing of ITR for resident individuals who hold specified foreign assets (FA) at any time during the relevant accounting period.

Rules and disclosures

A Schedule Foreign Asset (FA) is a section of the ITR where one must provide information about assets they own outside of India. "Non-resident or resident taxpayers who are not ordinarily residents are exempt from reporting their overseas assets in the ITR, nonetheless," says Sandeep Bajaj, managing partner, PSL