Many taxpayers who filed their income tax returns early in the assessment year are now discovering that they are unable to report foreign assets in revised ITR, especially when trying to update overseas bank accounts, foreign investments or immovable property located abroad. This issue has become increasingly common among individuals holding foreign assets in revised ITR attempts, leading to confusion and concerns regarding compliance. The Income Tax Department has now clarified why these foreign asset schedules are missing and what taxpayers should do to fix the issue before the final deadline for AY 2025–26.
Why Foreign Asset Schedules Don’t Appear in the Revised Return
The primary reason taxpayers find themselves unable to report foreign assets in revised ITR forms is the use of ITR-1 (Sahaj) or ITR-4 (Sugam) for the original filing. These two forms do not include Schedule FA (Foreign Assets), Schedule FSI (Foreign Source Income) or Schedule TR (Tax Relief). Because these forms are designed only for individuals with simple income structures and no overseas holdings, the system does not display the required schedules when taxpayers attempt to revise their return using the same ITR form.
As a result, individuals trying to disclose foreign assets in revised ITR—such as overseas bank accounts, stock holdings abroad, property located outside India or foreign-sourced income—cannot do so unless they shift to the correct form. The system is not malfunctioning; rather, the original selection of an incompatible ITR form is the root cause.
What the Income Tax Department Explained Under NUDGE 2.0
To address the widespread confusion, the Income Tax Department issued a clarification on X (formerly Twitter) as part of its NUDGE 2.0 tax compliance campaign. The department clearly stated that taxpayers who are unable to report foreign assets in revised ITR forms are using the wrong ITR form during revision. Since ITR-1 and ITR-4 do not support foreign asset reporting in any format, these schedules cannot be added later.
The guidance issued advises taxpayers to switch to the correct form—either ITR-2 or ITR-3—depending on income category, and ensure they submit a fully compliant revised return before December 31, 2025, the last date for AY 2025–26 revisions. Only after selecting the right form will the portal automatically display Schedule FA, FSI and TR for completing foreign asset disclosures.
Which ITR Form You Should Use to Report Foreign Assets Properly
To solve the issue of being unable to report foreign assets in revised ITR, individuals must switch to the appropriate form instead of sticking to ITR-1 or ITR-4.
ITR-2 should be used by individuals and HUFs who have foreign assets in revised ITR but do not earn income from business or profession. This form is specifically designed to accommodate disclosures related to foreign property, foreign financial interests, overseas bank accounts and foreign-derived income.
Meanwhile, ITR-3 is the correct form for individuals who hold foreign assets and also earn business or professional income. Once the taxpayer selects the right ITR form, the missing schedules—FA, FSI and TR—appear instantly, allowing proper reporting. Filing with the correct form is crucial because global information-sharing rules such as CRS and FATCA require accurate disclosures. Proper reporting also helps taxpayers claim foreign tax credits and avoid scrutiny, penalties or legal consequences under the Black Money Act.
How to Quickly Fix the Issue and Ensure Full Compliance
Taxpayers facing the issue of being unable to report foreign assets in revised ITR can fix it in minutes by following the right steps. After logging into the Income Tax e-filing portal, they must select the “Revised Return” option under AY 2025–26 and choose ITR-2 or ITR-3 based on their income category. Once the appropriate form is selected, they can fill in Schedule FA (Foreign Assets), Schedule FSI (Foreign Source Income) and Schedule TR (Tax Relief), depending on their overseas holdings and income.
The revised return must be submitted before December 31, 2025, to ensure legal compliance and avoid penalties. Proper disclosure also helps taxpayers maintain transparency, avoid scrutiny notices and ensure they receive legitimate foreign tax credit benefits.
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