AIS now shows foreign assets for 2022-24: What to do if you missed disclosure in past ITRs

Even if the AIS does not reflect updated foreign asset data, resident taxpayers must correctly report their investments or income from abroad under Schedule FA and Schedule FSI. Failing to do so can lead to tax notices in the future.

Schedule FSI (Foreign Source Income) is required to be filled to disclose income earned from sources outside India, such as foreign salary, interest, dividends, capital gains or professional income.

As the due date to file ITR for AY 2026-27 is still several days away, resident taxpayers have enough time to fill Schedule FA correctly. What if you had foreign assets in previous years, but you failed to disclose them in your ITR? In this case, you can still consider filing ITR-U

Which form to file?

If you have foreign assets, you cannot file ITR-1. ITR-2 can be used if you do not have business income.

For disclosing foreign assets from the previous calendar years, taxpayers need to furnish an updated return on the ITR forms notified for the respective assessment years, along with the ITR-U.

The ITR-U seeks additional information from taxpayers in Part A. Part B of the ITR-U is for the calculation of updated income and tax payable. This part includes the head of income under which additional income is reported. You are required to mention only the additional income.