How do I report foreign stocks and RSUs in Schedule FA?
Last reviewed: 4 November 2026 · Noema Research · 5 min read
Many salaried people with RSUs file a correct tax return and still leave Schedule FA empty. If you are resident and ordinarily resident and held any foreign shares, including vested RSUs or ESPP shares, at any time in the calendar year, you must report them in Schedule FA of ITR 2 or ITR 3, even if you sold nothing. Schedule FA follows the calendar year, January to December, not the April to March financial year. For each holding you enter the initial value, the peak value, the closing value, income credited and sale proceeds, in rupees. Not tax advice.
Create an account to keep your foreign holdings in one place for filing.
Who must file Schedule FA
Many people think Schedule FA is only for large foreign accounts. It applies to any resident and ordinarily resident person holding a foreign asset at any time in the calendar year, whatever the value and even with no income. Vested RSUs and ESPP shares count; unvested RSUs do not.
For how the shares are taxed at vest and sale, see how RSUs and ESPP are taxed in India.
Calendar year, not financial year
Filers often pull April to March figures from their payslips. Schedule FA uses January to December. Shares vested in February 2026 are not in the FY 2025 to 26 Schedule FA; they appear in next year's.
| ITR for | Financial year | Schedule FA period |
|---|---|---|
| AY 2026 to 27 | 1 Apr 2025 to 31 Mar 2026 | 1 Jan 2025 to 31 Dec 2025 |
What to enter for each holding
The table asks for values most people never track.
| Field | What it means | Where to find it |
|---|---|---|
| Date acquired | Vest or purchase date | Broker statement |
| Initial value | Value on the acquisition date | Vest confirmation |
| Peak value | Highest value during the calendar year | Price history × shares held |
| Closing value | Value on 31 Dec | Year end statement |
| Gross income credited | Dividends received | Broker tax form |
| Gross sale proceeds | Value of shares sold in the period | Trade confirmations |
Cash held at a foreign broker goes in Table A2, foreign custodial accounts.
A worked example
Arjun held 100 RSU shares all through 2025, peak price $220 and closing price $200, with $150 of dividends. At an illustrative ₹86 per dollar, he enters peak value ₹18,92,000, closing value ₹17,20,000 and income ₹12,900. Estimates, not predictions.
| Field | Dollars | Rupees |
|---|---|---|
| Peak value | $22,000 | ₹18,92,000 |
| Closing value | $20,000 | ₹17,20,000 |
| Dividends | $150 | ₹12,900 |
ITR 2 or ITR 3
ITR 1 does not have Schedule FA, so holding any foreign share rules it out. Use ITR 2 if you have salary, capital gains and other income but no business or professional income. Use ITR 3 if you also have business or professional income, including futures and options trading.
What happens if you do not report
Some assume a small holding does not matter. Under the Black Money Act, 2015, not reporting a foreign asset can attract a penalty of ₹10 lakh. Since 1 Oct 2024 that penalty does not apply if your foreign movable assets, other than immovable property, total ₹20 lakh or less. Reporting is still required at any value.
Common mistakes
- Using April to March instead of January to December.
- Reporting only shares you sold.
- Leaving out shares sold during the year.
- Entering unvested RSUs.
- Filing ITR 1 while holding foreign shares.
- Forgetting cash left at the foreign broker in Table A2.
FAQ
Do I need to report RSUs in Schedule FA?+
Yes, once they vest. If you are resident and ordinarily resident and held vested RSUs at any time in the calendar year, report them in Table A3 of Schedule FA. Unvested RSUs are not reported.
Which period does Schedule FA cover?+
The calendar year, 1 Jan to 31 Dec. For the ITR for FY 2025 to 26, report holdings from 1 Jan 2025 to 31 Dec 2025.
Can I use ITR 1 if I hold foreign shares?+
No. Schedule FA is in ITR 2 and ITR 3 only. Use ITR 2 without business income and ITR 3 with it.
What if I sold all my RSUs during the year?+
Still report them. Any foreign asset held at any time in the calendar year goes in Schedule FA, with sale proceeds and a closing value of zero.
Related answers
- How are RSUs and ESPP taxed in India?
Tax at vesting and at sale, with a worked example in rupees. Rules for planning, not tax advice.
- Old vs New Tax Regime: When Does the Old One Still Win?
For Tax Year 2026-27, the new regime costs less for most salaries. At ₹18 lakh, the old one wins only once your deductions pass ₹6,41,667. Find your break-even.
- How are mutual fund gains taxed in India?
Mutual fund capital gains tax rules for equity, debt and hybrid funds, holding periods and how gains are worked out. Rules checked 26 Oct 2026. Estimates for planning, not tax advice.
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