How to Correctly Fill the FA Schedule in ITR-2 (FY 2025–26): Examples, Compliance & Tips
Reporting foreign assets in ITR-2 using Schedule FA is crucial for resident Indians and NRIs. The FY 2025–26 update emphasizes correct disclosure of all foreign assets, including: Bank accounts Financial instruments Immovable property Other forei...
Reporting foreign assets in ITR-2 using Schedule FA is crucial for resident Indians and NRIs. The FY 2025–26 update emphasizes correct disclosure of all foreign assets, including:
Bank accounts
Financial instruments
Immovable property
Other foreign assets
Improper reporting can lead to penalties, delayed processing, or legal complications.
This blog provides a practical step-by-step guide, along with examples and expert tips, for accurately filling Schedule FA.
Step 1: Identify Foreign Assets
Create a detailed list of all foreign holdings:
| Asset Type | Examples |
| Bank Accounts | Savings, Current, Fixed deposits |
| Financial Assets | Shares, Mutual Funds, Bonds |
| Immovable Property | Land, Buildings, Apartments |
| Other Assets | Insurance policies, Loans, Trusts |
Tip: Include jointly held assets in proportion to your ownership.
Step 2: Gather Details for Each Asset
For each foreign asset, collect:
Country
Account/Asset Type
Opening/Closing Balance in foreign currency
Conversion Rate to INR (RBI TT rates)
Ownership share (for joint assets)
Accurate documentation ensures correct reporting and avoids penalties.
Step 3: Filling Schedule FA in ITR-2
Open ITR-2 form and navigate to Schedule FA. Fill in the following:
| Section | Details Required | Notes |
| Part A | Foreign Bank Accounts | Name, account number, balance in INR |
| Part B | Financial Interests/Ownership | Shares, securities, mutual funds, bonds |
| Part C | Immovable Property | Address, ownership percentage, market value |
| Part D | Other Assets | Loans, trusts, insurance policies, other assets |
Example: Correctly Reporting a Foreign Asset
Scenario:
Asset: USD 15,000 in US bank
RBI TT Rate: 1 USD = ₹83
Ownership: 50% joint with spouse
Step 1: Convert to INR:
15,000 × 83 = ₹12,45,000
Step 2: Proportional ownership:
50% → ₹6,22,500
Step 3: Schedule FA Entry:
| Country | Asset Type | Ownership % | Value in INR |
| USA | Bank Account | 50% | 6,22,500 |
Step 4: Common Mistakes to Avoid
Not including jointly held assets
Reporting in foreign currency instead of INR
Omitting immovable property or other investments abroad
Late filing or incomplete Schedule FA
Underreporting resulting in penalties under Section 271F
Step 5: Compliance Tips & Best Practices
Always cross-check conversion rates with RBI or telegraphic transfer rates
Maintain supporting documents for all assets
Review previous year’s filings to avoid inconsistencies
For NRIs, coordinate with Indian income declaration
Consider professional help from WonderTax for error-free filing
Example: Reporting Multiple Foreign Assets
| Country | Asset Type | Ownership % | Value in INR |
| USA | Bank Account | 100% | 8,30,000 |
| UK | Mutual Funds | 100% | 5,50,000 |
| UAE | Immovable Property | 50% | 12,00,000 |
| Canada | Loan to relative | 100% | 2,50,000 |
Total Value: ₹28,30,000
All entries correctly filled in Schedule FA → Avoids penalties
FAQ Schema
Q1: Are joint foreign accounts required to be reported?
Yes, report only your proportionate share.
Q2: How to convert foreign currency to INR?
Use RBI telegraphic transfer rate on last day of FY.
Q3: What happens if FA is missed in ITR?
Penalty under Section 271F: up to ₹1,00,000, plus possible addition of undisclosed income.
Q4: Are NRIs required to report Schedule FA?
Yes, if foreign assets impact Indian taxation or if resident in India during the FY.
Internal Links
Schedule FA Explained
How to File ITR Online
NRI Taxation & Foreign Income
Conclusion
Correctly filling Schedule FA in ITR-2 is mandatory and ensures:
Compliance with Income Tax laws
Avoidance of penalties and legal complications
Accurate reporting of foreign assets
Optimized tax planning
WonderTax provides end-to-end support to ensure Schedule FA reporting is 100% accurate and compliant for FY 2025–26.
CTA
👉 Need expert help with Schedule FA or ITR-2 filing?
WonderTax can help you:
Report foreign assets accurately
Minimize penalties
Ensure complete compliance with FY 2025–26 rules
