Mr. Manish is a resident in India since August 2013. Prior to this, he was working for a MNC at USA for 2 years. Out of his savings at USA, he has invested money in NASDAQ stocks and also holds a bank account. Now Mr. Manish is working for a startup company earning an annual salary of Rs.30 Lakhs. While filing his return for the Financial Year 2013-14, we asked him about his assets abroad. He wanted to know whether it is mandatory under the law to this disclose his overseas assets to Indian Income Tax authorities.
Declare Foreign Assets
The Schedule FA of Income tax return requires resident assesse to disclose overseas assets. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’.
Following particulars relating to overseas assets is to be filled.
- Foreign Bank Accounts: Name and address of the Bank, location, the account holders name and the peak balancemaintained in the bank during the year after converting the same into Indian currency.
- Financial Interest in an Entity: Name, Address and nature of entity such as firm, company, trust where the interest is held and the total investment held at cost during the year after converting it into Indian currency.
- Immovable Property and other Asset: location of the property along with total investment.
- Details of any account located outside India in which the assessee has signing authority. Along with address of the institution where the account is held.
Declare Foreign Income
In case of resident Individuals, the global income is taxable in India. The Schedule FSI to be filled by such taxpayers. The details to be given are –
- Fill the details of income (with the breakup of such income from abroad under the heads of income from salary, house property etc.) forming part of total income, accruing or arising outside India.
- Tax paid outside india under various heads of income
- Relevant article of DTAA if tax relief is claimed
- For country code use the International Subscriber Dialing (ISD) code of the country.
- The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.
An individual (qualifying as a resident) who holds assets abroad is also required to file his I-T return even if he does not have any income in India.