Foreign shares not reported in Schedule FA: What happens next? A case study

Filing an income tax return (ITR) does not always mean the matter is closed. In some cases, taxpayers may receive notices later due to missing disclosures. In this article, we will tell you how small oversights, like unreported foreign investments, can lead to notices or refund delays.

A taxpayer had invested in foreign shares, but those investments were inadvertently not reported while filing his ITR. After the return was filed, he received an email from the income tax department highlighting the non-disclosure of foreign assets. On review, it was found that Schedule FA had not been filled, and details of foreign shareholdings and related income were missing.

"We collected complete information on the foreign shares held, along with the dividend income earned during the year, and filed a revised return. In the revised ITR, the foreign assets were correctly disclosed under Schedule FA, and the dividend income was appropriately reported," said Abhishek Soni, CEO & Co-founder, Tax2win.

In several instances, information shared by US authorities revealed that foreign shares, dividends, or income were not properly disclosed in Schedule FA, triggering compliance notices.

Schedule FA (Foreign Assets)

Schedule FA in the ITR is used by resident Indians to report their foreign asset holdings. This includes details of foreign bank accounts, equity, debt, and other financial assets. Non-residents and “not ordinarily residents” are not required to fill this schedule.

In late November 2025, the Central Board of Direct Taxes (CBDT) launched the second NUDGE campaign , sending SMSs and emails to taxpayers with missing or incomplete foreign asset disclosures in Schedule FA and Schedule FSI. Recipients were urged to review and revise their returns by 31 December 2025 to avoid penalties.