Schedule FA in ITR: How to Declare US Stocks as Foreign Assets
Blog by Aliceblue News Desk
21 October 2026
11 minutes
You bought a few US shares last year through an international investing app. Now you are filling out your income tax return and see a section called Schedule FA. If you are a resident Indian and held US stocks at any time during the calendar year, you must report them in Schedule FA of ITR-2 or ITR-3. This applies even if the shares made no profit and paid no dividend.
Quick Answer
Schedule FA is where resident taxpayers disclose foreign assets in their ITR. US shares go in Table A3, while the foreign brokerage account goes in Table A2. In the official Schedule FA structure, these fall under Part B for financial interest in an entity abroad and Part A for foreign custodial accounts. You report the initial value, peak value, and closing value for the calendar year from 1 January to 31 December, converted into rupees.
Table of Contents
- What Is Schedule FA in ITR?
- Who Needs to Declare US Stocks in Schedule FA?
- Which Table or Part Is Used for US Stocks?
- How to Declare US Stocks in Schedule FA: Step by Step
- Schedule FA Example: US Stocks Held by an Indian Investor
- What Is the Penalty for Not Declaring US Stocks?
- Advantages of Filing Schedule FA Correctly
- Schedule FA vs Schedule FSI vs Schedule TR
- Documents to Keep Ready
- Common Mistakes While Filing Schedule FA
- Tips for First-Time Filers
- FAQs on Declaring US Stocks in ITR
What Is Schedule FA in ITR?
Schedule FA means Schedule of Foreign Assets. It is the section of the income tax return where you provide details of assets held outside India and income earned from sources outside India.
The schedule exists because Indian residents are taxed on their worldwide income. The tax department wants to know not only what you earned abroad, but also what you own there.
Reporting an asset is different from paying tax on it. Suppose you hold US shares worth ₹50,000 and they paid no dividend. You may not owe additional tax, but you still need to show the holding in Schedule FA.
Schedule FA applies to resident taxpayers who hold, own, or have a beneficial interest in foreign assets, or who receive income from outside India. If you invest only in Indian shares, mutual funds or IPOs, this schedule does not apply to you.
Who Needs to Declare US Stocks in Schedule FA?
You generally need to fill Schedule FA if you are a resident and ordinarily resident (ROR) and held any of the following during the calendar year:
- US company shares bought through an international investing platform
- US-listed ETFs
- Shares received through RSUs or ESPPs from a foreign employer
- A foreign brokerage or custodial account
- A foreign bank account
- Foreign mutual funds, bonds, property or other overseas investments
RSUs are restricted stock units. Your employer grants them, and they usually become yours after a waiting period. ESPP means employee stock purchase plan, where employees can buy company shares, often at a discount.
If you received RSUs or bought shares under an ESPP, treat them like any other US shares. Report them in Schedule FA once they are credited to your account.
Non-residents and resident but not ordinarily resident taxpayers generally do not need to fill Schedule FA. Your residential status for the relevant financial year decides this, so check it before filing.
Which Table or Part Is Used for US Stocks?
US stocks usually require entries in two places.
What you are reporting | ITR form label | Official Schedule FA part |
Foreign brokerage or custodial account | Table A2 | Part A: Foreign depository and custodial accounts |
Each US share or ETF | Table A3 | Part B: Financial interest in any entity held |
Think of Table A2 as reporting the locker and Table A3 as reporting each item kept inside it.
If you own shares in three US companies through one foreign broker, you will normally have:
- One entry in Table A2 for the brokerage account
- Three entries in Table A3, one for each company
The official Schedule FA page describes Part A as covering foreign depository and custodial accounts, and Part B as covering financial interest in an entity held outside India. ClearTax also explains that US equity shares are disclosed in Table A3, while account-level details are reported separately.
How to Declare US Stocks in Schedule FA: Step by Step
1. Confirm your residential status
Check whether you were a resident and ordinarily resident for the financial year. If yes, Schedule FA generally applies to your foreign holdings.
2. Choose the correct ITR form
Because you have foreign assets, use ITR-2 or ITR-3. ITR-1 does not provide for foreign asset disclosure.
3. Use the calendar year, not the financial year
Schedule FA follows the calendar year ending 31 December. For an ITR filed for FY 2025-26, you generally report assets held during 1 January 2025 to 31 December 2025.
This is different from the rest of your ITR, which follows the Indian financial year from 1 April to 31 March.
4. Download broker statements
Collect these details from your foreign broker:
- Purchase date and number of shares
- Purchase price
- Highest value during the year
- Value on 31 December
- Dividends received
- Sale proceeds, if you sold shares
- Account balance and peak account balance
5. Convert dollar values into rupees
Convert each value into INR using the exchange rate applicable on the relevant date. Many taxpayers use the SBI telegraphic transfer buying rate, but confirm the accepted method with your tax adviser or the latest ITR instructions.
Use the rate for the date of purchase for initial value, the date of the highest value for peak value, and 31 December for closing value.
6. Fill Table A2 for the brokerage account
Enter the foreign broker or custodial account details. This usually includes the country, name, and address of the institution, account opening date, peak balance, closing balance and income credited to the account.
7. Fill Table A3 for each share
Create a separate row for each US company or ETF. The table below shows the details you will usually need.
Schedule FA field | What a beginner should enter |
Country | United States of America |
Name of entity | Name of the US company or ETF issuer |
Date of acquisition | Date you first bought or received the shares |
Initial investment value | Purchase value converted to INR |
Peak value during the period | Highest value during the calendar year, in INR |
Closing value | Value on 31 December, in INR |
Gross amount paid or credited | Dividends received during the year |
Gross sale proceeds | Total INR value received if you sold shares |
8. Report the income separately
Dividends and capital gains are income. They must also be reported in the relevant income sections of your ITR.
If US tax was deducted from your dividend, you may be able to claim a foreign tax credit. For that, you may also need to fill Schedule FSI and Schedule TR. You can read more about capital gains tax on stocks to understand how sale profits are taxed in India.
Schedule FA Example: US Stocks Held by an Indian Investor
Ravi lives in Chennai and works for an Indian company. In March 2025, he bought 10 shares of a US-listed company through an overseas brokerage account. The figures below are illustrative. Use your actual broker statements and exchange rates while filing.
Item | Date | Value in USD | Exchange rate | Value in INR |
Purchase value | 15 March 2025 | $2,000 | ₹84 | ₹1,68,000 |
Peak value | 10 August 2025 | $2,600 | ₹87 | ₹2,26,200 |
Closing value | 31 December 2025 | $2,400 | ₹89 | ₹2,13,600 |
Dividend received | September 2025 | $12 | ₹86 | ₹1,032 |
Ravi did not sell any shares during the year.
In Table A3, he reports:
- Initial investment value: ₹1,68,000
- Peak value: ₹2,26,200
- Closing value: ₹2,13,600
- Gross amount paid or credited: ₹1,032
- Gross sale proceeds: Nil
Peak value means the highest market value of the shares at any time while you held them during the calendar year. It is not necessarily the value on 31 December.
The peak value calculation is:
Peak value = number of shares × highest price per share × exchange rate on that date
Peak value = 10 × $260 × ₹87 = ₹2,26,200
Ravi also reports his foreign brokerage account in Table A2. Even though he made no sale and paid no capital gains tax, he still files Schedule FA because he held a foreign asset during the calendar year.
What Is the Penalty for Not Declaring US Stocks?
Not declaring a foreign asset can lead to penalties under the Black Money Act. If a resident taxpayer files an ITR but omits a foreign asset or provides incorrect details, a penalty of up to ₹10 lakh may apply under Section 43 of the Black Money Act.
If the taxpayer does not file a return at all despite holding a foreign asset, Section 42 can also apply.
There may be relief in certain low-value cases. Reports indicate that the penalty may not apply where the total value of foreign assets, other than immovable property, is ₹20 lakh or less at any time during the year. However, this depends on the applicable law and the facts of each case. Do not treat a small holding as exempt from disclosure.
The disclosure requirement itself generally remains. Tax rules and ITR forms change every year, so check the current-year instructions or speak to a tax professional before filing.
Advantages of Filing Schedule FA Correctly
- Avoids penalty risk. Disclosing every foreign asset reduces the chance of a notice or penalty later.
- Keeps your tax record clean. A complete return is easier to defend if the tax department asks questions.
- Helps you claim foreign tax credit. If US tax was deducted from your dividends, proper reporting supports a claim for relief.
- Makes next year easier. Once you maintain a simple record, each year’s filing takes less time.
- Gives you a clear view of overseas investments. Tracking purchase value, peak value, and closing value helps you understand your portfolio better.
Schedule FA vs Schedule FSI vs Schedule TR
These three schedules are related but do different jobs.
Parameter | Schedule FA | Schedule FSI | Schedule TR |
Main purpose | Disclose foreign assets | Report income from outside India | Claim relief for foreign tax paid |
Based on | Assets held during the calendar year | Foreign income earned | Tax paid in a foreign country |
Needed if no income? | Yes, if you held an asset | No | No |
Example | US shares held through a broker | Dividend from US shares | US tax deducted from dividend |
If you hold US shares but received no dividend, you may need only Schedule FA. If you received dividends and US tax was withheld, you may also need Schedules FSI and TR.
Documents to Keep Ready
Keep these records in one folder before you start filing:
- Broker annual statement
- Contract notes or trade confirmations
- Dividend statements
- RSU vesting statements
- ESPP purchase statements
- Sale confirmations
- Foreign tax deduction certificates, if applicable
- Year-end account balance statement
These documents make it easier to fill in initial value, peak value, closing value, dividends, and sale proceeds without guesswork.
Common Mistakes While Filing Schedule FA
- Assuming no profit means no reporting. Schedule FA is about ownership, not profit. Report the shares even if their value fell.
- Using the financial year instead of the calendar year. Always check the period from 1 January to 31 December.
- Leaving out shares sold during the year. If you held them at any time in the calendar year, disclose them.
- Reporting only the closing value. You also need the initial and peak values.
- Ignoring small holdings. A small investment still needs disclosure.
- Missing the brokerage account. Report the account in Table A2 and each holding in Table A3.
- Forgetting RSUs or ESPP shares. Shares received from a foreign employer are foreign assets once vested or credited to you.
- Not reporting dividends as income. Schedule FA discloses the asset, but dividend income also needs to be shown in the income section.
Tips for First-Time Filers
- Download your broker’s annual statement every January.
- Keep a simple record of purchase dates, share counts, dividends, and sale proceeds.
- Note the highest value of each holding during the year, not only the year-end value.
- Save screenshots or statements showing vesting dates if you receive RSUs.
- Report the brokerage account and individual shares separately.
- Do not wait until the ITR deadline to collect documents.
- Speak to a chartered accountant if you hold foreign funds, trusts, property or several overseas accounts.
Conclusion
Schedule FA is a disclosure schedule, not a tax calculation. If you are a resident Indian and held US shares during the calendar year, report the brokerage account in Table A2 and each share or ETF in Table A3. Use calendar-year values, convert them into rupees, and include dividends or sale proceeds in your income reporting. Keep broker statements ready each year and disclose every foreign holding, however small. If your case involves RSUs, ESPPs, or multiple foreign accounts, get advice from a qualified tax professional before filing.
FAQs on Declaring US Stocks in ITR
Blog by Aliceblue News Desk
