Got I-T notice for undisclosed foreign assets in ITRs? Here is what you need to do

Why are these notices being sent?

The notices are part of the department’s enhanced foreign data matching and information exchange mechanisms, which now capture details from overseas jurisdictions, global custodians, and financial institutions.

“Most of the cases we are seeing are genuine omissions, not concealment. Salaried individuals often do not realise that shares, restricted stock units (RSUs), ESOPs or bonus shares received from MNC employers need to be reported separately in Schedule FA, even if tax has already been paid through salary,” Singla said.

This issue has become more common as Indian professionals increasingly work for multinational companies or receive stock-based compensation from overseas parents or group entities.

Foreign investments through apps 

Another category of taxpayers receiving intimations includes individuals investing in foreign equities and ETFs through Indian platforms.

“Similarly, many people now invest in foreign stocks and ETFs through platforms like INDmoney and other brokers, and assume that since the investment is done through an Indian app or bank, no separate disclosure is required. That assumption is incorrect as such foreign holdings too are reportable in your ITR,” Singla added.

Tax experts say the key requirement is where the asset is located, not where the app or broker is based. Any foreign shareholding, ETF, or overseas financial interest must be disclosed under Schedule FA (Foreign Assets) of ITR.

Foreign bank accounts, even inactive ones, trigger disclosure

One also needs to disclose holdings in foreign bank accounts.

“A large number of emails are also going to people who hold foreign bank accounts, especially parents whose children are settled abroad. In many cases, children have opened a bank account in the parent’s name for convenience, visa compliance or family support, and the parent is often not even actively operating the account," Singla said.

However, even mere holding of a foreign bank account or signatory authority triggers a disclosure requirement, regardless of whether any income was earned from it, he added.

This means that even zero-balance or inactive accounts need to be reported if the taxpayer’s name appears as a holder or authorised signatory.

What should taxpayers do?

Don't ignore the communication, say experts.

"The practical advice to taxpayers is simple that don’t ignore the communication and don’t panic. Sit with your CA, review whether you have any foreign shares, RSUs, ESOPs, overseas bank accounts or foreign investments, collect the relevant details, and file a revised return if required," he said.

Taxpayers have time until December 31, 2025, to file a revised ITR. In most cases, a timely revision is enough to close the matter.

Step-by-step action plan for taxpayers

Read the intimation carefully. List all possible foreign assets, including:

• Overseas shares, RSUs, ESOPs


• Foreign ETFs or funds


• Foreign bank accounts (even dormant)


• Signatory authority in overseas accounts


• Collect documents such as broker statements, grant letters, bank statements and holding details.


• Consult a chartered accountant to ensure accurate reporting under Schedule FA.


• File a revised ITR before December 31 to correct omissions.