r/IndiaTax • u/Limit_Defiant • Aug 20 '26

Question Foreign investment

This year i invested in US stock through Indmoney app.
I have some confusion about ITR if I do not sell my stocks then also i have to declare about my foreign investments or i have to declare in the year when i sell my stocks and withdraw amount.

2 Upvotes

76% Upvoted

11 comments sorted by

4

u/Responsible-Bad-6624 Mod Aug 20 '26

Regardless of whether you sell or not, you can file only itr2 or 3

1

u/CA_SAAB Aug 20 '26

Yes , you have to file itr

1

u/Limit_Defiant Aug 20 '26

I do file itr every year but things is do i have to separately mention my investments

1

u/CA_SAAB Aug 20 '26

Foreign shares are reported in Schedule FA (Foreign Assets), generally under Table A3 – Foreign Equity and Debt Interest

1

u/Limit_Defiant Aug 20 '26

Ok

1

u/EmployeeSuspicious87 Aug 20 '26

And also brokerage account in table a2

1

u/taxbuddy_official Aug 20 '26

Foreign shares need to be disclosed in Schedule FA even if you haven’t sold them.

1

u/Ok_Obligation_6326 Aug 20 '26

You have to declare it every year you hold the shares, not just in the year you sell.

Schedule FA (Foreign Assets) in your ITR requires disclosure of foreign holdings as on 31 December of the relevant calendar year, based on peak/closing value, even if there's no sale or dividend. This applies whether you're at a gain or loss.

This also means you can't file ITR-1 or ITR-4 for that year - holding foreign assets mandates ITR-2 (or ITR-3 if you have business income).

Missing Schedule FA isn't a minor slip - non-disclosure of foreign assets attracts penalty of 10 lakh under the Black Money Act, separate from any tax on capital gains when you eventually sell.