Foreign assets in revised ITR have become a major compliance focus for the Income Tax Department, especially after bulk intimations sent to taxpayers based on international data sharing .The Income Tax Department has recently sent emails and intimations to several taxpayers regarding the non-disclosure of foreign assets or foreign income for Assessment Year (AY) 2025–26. These communications are part of a large data-matching exercise based on information shared by foreign jurisdictions under global frameworks such as CRS (Common Reporting Standard), FATCA, and AEOI.
If you have received such an intimation, it means the department has data suggesting that you held or earned foreign income or assets during Calendar Year 2024, but the details were not properly disclosed in your original Income Tax Return (ITR). In such cases, taxpayers are required to report foreign assets in revised ITR by 31 December 2025 to avoid penalties.
What Does the Income Tax Department’s Email Mean?
The email issued by the Income Tax Department states that information has been received from foreign authorities indicating ownership of foreign assets or income such as bank accounts, interest, dividends, or investments. It further mentions that Schedule Foreign Assets (Schedule FA) was either missing or incomplete in the filed ITR.
This is not a tax notice or enforcement action, but a compliance reminder. Taxpayers are given an opportunity to correct the omission by filing a revised ITR within the permitted timeline.
Which Foreign Assets Must Be Disclosed in Revised ITR?
According to tax experts, disclosure of foreign assets in revised ITR is mandatory for Resident and Ordinarily Resident (ROR) individuals, irrespective of income earned. The following foreign assets must be reported:
- Any immovable property outside India (land, flat, house, commercial property)
- Foreign bank accounts, including dormant or inactive accounts
- Jointly held foreign assets or bank accounts
- Foreign insurance policies
- Signatory authority in a foreign bank account
- Shares, bonds, and mutual funds held abroad
- ESOPs and RSUs received from foreign employers
- Foreign pension or retirement benefit accounts
- Cryptocurrency or digital assets held overseas
- Trusts created outside India
Even if the asset was purchased earlier or did not generate income during the year, disclosure is compulsory.
Who Needs to File a Revised ITR?
Taxpayers must file a Foreign Assets in Revised ITR if they:
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Missed reporting foreign assets or income in the original return
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Did not fill Schedule FA at all
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Reported incorrect or incomplete foreign asset details
This requirement mainly applies to Resident and Ordinarily Resident (ROR) individuals for FY 2024–25. Salaried individuals who received ESOPs, RSUs, foreign shares, or bonuses, or those holding foreign bank accounts, are commonly affected.
Tax experts emphasize that Schedule FA is separate from Schedule AL and must be filled independently.
Who Is Not Required to File a Revised ITR?
Non-residents (NRIs) and Resident but Not Ordinarily Resident (RNOR) taxpayers are generally not required to disclose foreign assets in Schedule FA, unless the income is taxable in India.
However, residency status must be carefully evaluated for the relevant financial year before assuming exemption.
Is Disclosure Required Even Without Income?
Reporting foreign assets in revised ITR is mandatory even if no income is earned from those assets. The law requires disclosure regardless of whether any income was generated, whether tax was paid abroad, the value of the asset, or the year in which it was acquired. Disclosure of foreign assets in revised ITR is independent of tax liability and must be made to ensure complete and accurate compliance with Indian income tax laws.
Which ITR Form Should Be Used for Reporting Foreign Assets?
Tax professionals recommend using ITR-2 or ITR-3 for reporting foreign assets. Forms such as ITR-1 and ITR-4 do not support Schedule FA and should not be used when Foreign Assets in Revised ITR.
Ensure that:
- Schedule FA contains complete asset details
- Schedule FSI correctly reports foreign-source income, if any
- Country code, peak balance, acquisition date, and ownership details are accurate
What Happens If Foreign Assets Are Not Reported?
Failure to foreign Assets in Revised ITR can have serious consequences under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015. Penalties for non-disclosure can go up to ₹10 lakh, along with possible prosecution in severe cases.
Additionally, the undisclosed asset may be taxed at 30% of its value, and the case may be reopened under income tax reassessment provisions.
Deadline to Act: 31 December 2025
The last date to file a revised ITR for AY 2025–26 is 31 December 2025, unless the assessment is completed earlier. Missing this deadline can permanently close the opportunity to correct the return voluntarily.
If you have received an intimation regarding foreign assets, do not panic—but do not ignore it either. The Income Tax Department is offering taxpayers a chance to comply by properly reporting foreign assets in revised ITR.
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