Foreign asset schedules missing in revised ITR after filing ITR-1/4? I-T dept explains solution

Many taxpayers who have already filed their Income Tax Return (ITR) are now running into an unexpected hurdle: when attempting to file a revised return, details related to Schedule Foreign Assets (FA), Foreign Source Income (FSI) or Tax Relief (TR) are not visible in the form. The Income Tax Department has addressed this issue through a recent post on social media platform X, guiding affected taxpayers on the corrective steps.

Anyone who owns assets outside India, such as foreign bank accounts, immovable property, shares or other investments, or earns income from foreign sources must be especially careful while filing or revising their return. Such taxpayers are required to report these details in the appropriate schedules of their ITR.

To correctly disclose foreign assets or foreign income in a revised return, taxpayers must use either ITR-2 or ITR-3, depending on their overall sources of income, as specified on the Income Tax Department’s website. After choosing the correct revised form, they must ensure that the version selected includes Schedule FA (Foreign Assets), where overseas holdings are reported. Forms ITR-1 and ITR-4 do not contain Schedule FA, which is why taxpayers using these forms will not see the foreign asset or foreign income sections.

For Assessment Year (A.Y.) 2025–26, taxpayers still have time to correct their filings. A revised ITR can be submitted up to December 31, 2025, giving those with foreign assets or income an opportunity to rectify omissions and comply with enhanced reporting norms. These requirements aim to improve tax transparency for foreign assets and income under international frameworks such as the Common Reporting Standard (CRS) and FATCA.

Which ITR form should you use to report foreign assets?

If you hold any foreign assets or have earned income overseas, you must file or revise your tax return using ITR-2 or ITR-3, depending on your overall sources of income. These are the only forms that contain Schedule FA—the section where taxpayers must disclose details of assets or income held outside India. The Income Tax Department clearly states that ITR-1 and ITR-4 do not include Schedule FA and therefore cannot be used for such reporting. Once the correct ITR form is selected, taxpayers need to choose the revised return option and fill out Schedule FA along with any other relevant schedules.

Window to file a revised return

For A.Y. 2025–26, the Income Tax Department has allowed taxpayers to file revised returns until December 31, 2025. This timeline supports India’s commitment to improved transparency under CRS and FATCA.

Who must report foreign assets?

Under the Income Tax Act, 1961, reporting foreign assets is mandatory for individuals classified as Resident and Ordinarily Resident (ROR). This includes:

Resident Individuals and HUFs: All taxpayers who qualify as ROR must declare details of overseas bank accounts, signing authority, real estate, stocks, mutual funds, or any other financial interests held abroad.

Beneficial Owners: Anyone with a beneficial interest in a foreign financial asset or signing authority over an overseas account must report these details accurately.

Beneficiaries: If you are a beneficiary of foreign assets and the related income is not included in the beneficial owner’s return, you must file your own return and disclose all required information.

Why disclosure is essential

According to the Income Tax Department, completing Schedule FA, FSI and TR helps taxpayers ensure complete and accurate reporting of all foreign assets and income, avoid penalties or legal consequences for non-disclosure, and claim eligible tax relief under Indian tax laws or DTAA. Proper disclosure not only ensures compliance but also supports transparency within the global tax system.