Report all foreign assets in ITR

Receiving shares outside India through Employee Stock Ownership Plans or Restricted Stock Units qualifies as holding foreign assets

- Amarpal S Chadha

WHILE GLOBAL INVESTMENTS offer the potential for higher returns and diversification, they also introduce complexities, particularly from a tax compliance perspective. A common misconception among investors is that tax reporting obligations arise only when foreign assets are sold.

Resident individuals are required to disclose foreign assets annually, irrespective of whether they have generated income. This includes reporting investments in foreign equities, mutual funds, or foreign bank accounts in the "Foreign Assets" schedule of the Income Tax Return (ITR). Cash balance in overseas brokerage accounts to facilitate such investments also must be disclosed in the ITR.