[FAQs] Income Tax Returns (ITR) | Reporting in Schedules in ITR

Yes. For the Assessment Year 2024-25, the new ITR forms mandate taxpayers to disclose all bank accounts held in India during the previous year. However, dormant accounts are exempt from this requirement.

Schedule FA (Foreign Assets) is compulsory for Indian residents if they:

• Hold any assets outside India,
• Have signing authority in any foreign account, or
• Earn income from foreign sources.

Non-residents (NR) or Not Ordinarily Residents (NOR) are not required to file Schedule FA. The relevant accounting period for reporting foreign assets is the previous calendar year. This means assets held even for a single day between January 1, 2023, and December 31, 2023, must be reported for the Assessment Year 2024-25, irrespective of the fiscal year in the foreign country.

Example 1

The assessee must furnish the details of Google LLC’s share in ITR applicable for Assessment Year 2024-25 even if he has not held the foreign asset in the previous year.

Example 2

If you paid tax in a foreign country, you can claim a credit for it in the year when the income is offered or assessed to tax in India. As per Rule 128 of the Income-tax Rules, 1962, you must submit Form No. 67 detailing the foreign income and taxes paid, along with other required documentation by the following deadlines:

Details of the relief claimed must be reported in ‘Schedule TR’ of the ITR form.

A new table in ITR forms [ITR-2, ITR-3 & ITR-5] requires reporting unlisted equity shares, including:

• Company name
• Company PAN
• Number and cost of shares at the beginning of the year
• Details of shares acquired during the year (number, face value, issue price, and date)
• Details of shares sold during the year (number and sale consideration)
• Number and cost of shares at the end of the year

If the cost of acquisition or sale consideration is not ascertainable due to acquisition via gift, will, etc., zero or an appropriate value may be entered. These details are for reporting purposes only and do not impact income computation or tax liability[1].

No. Shares listed on a recognized stock exchange outside India are not considered unlisted shares for ITR reporting. However, they must be reported in Schedule FA.

No. Shares in cooperative banks or societies are not considered unlisted for ITR purposes. Reporting is only required for unlisted equity shares in companies registered under the Companies Act.

Yes. Unlisted equity shares held as stock-in-trade must be reported in the ITR.

Yes. Schedule AL requires reporting of assets and liabilities if total income exceeds Rs. 50 lakhs. Foreign assets must be reported in Schedule FA and Schedule AL if held at the end of the previous year.

A ‘beneficial owner’ is defined in Section 139(1) of the Income-tax Act, 1961, as an individual who provides, directly or indirectly, the consideration for the asset and holds it for their benefit or another person.

‘Financial Interest’ includes situations where the resident assessee:

• Is the record owner or legal title holder of a financial account or
• Holds the title indirectly through:
• An agent, nominee, or attorney,
• A corporation where the assessee has any share or voting power,
• A partnership where the assessee has an interest,
• A trust with beneficial or ownership interest,
• Any entity with voting power, equity interest, or interest in profits.

No. Assets and liabilities disclosed in the business balance sheet in Part A-BS of ITR are not required to be reported in Schedule AL.

Interest income from employee contributions over Rs. 2,50,000 (or Rs. 5,00,000 if there is no employer contribution) to a provident fund is taxable. ITR forms require separate reporting of such interest accrued.

Income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs must be reported in Schedule VDA. It is taxed at 30%, and no deductions other than the cost of acquisition are allowed. Details required include acquisition and transfer dates, category of income, cost of acquisition, and consideration received.

No. The standard deduction of Rs. 50,000 can only be claimed once per year, regardless of the number of employers. Salary income from all employers should be reported in ‘Schedule S’ using Form 16 from each employer.