If you’ve received a notice asking you to disclose foreign assets or correct your return, don’t worry.
The Income Tax Department usually allows you to fix the mistake by filing a revised return or submitting correct details.
This guide explains exactly what to do, step by step.
Step 1: Understand What You Need to Disclose
Before logging in, be clear about what foreign asset you missed.
Common examples:
Foreign bank accounts
Overseas investment accounts
Foreign shares / ESOPs
Property outside India
Any financial account held abroad, even if the balance was small or the account is now closed, it must be disclosed if it existed during the year.
Step 2: Log in to the Income Tax Portal
Go to: Income Tax Website
Step 3: Choose “File Revised Return”
From the dashboard:
Click e-File
Select Income Tax Returns
Click File Income Tax Return
Choose the Assessment Year
Select Revised Return (u/s 139(5))
If the notice specifically asks for a reply instead of revision, follow the notice instructions. Otherwise, revised return is the safest option.
Step 4: Go to “Schedule FA – Foreign Assets”
While filling the return, scroll to Schedule FA.
This section is ONLY for:
Resident taxpayers
Not required for non-residents (in most cases)
Step 5: Fill Schedule FA Correctly (Very Important)
Schedule FA is divided into parts. Fill only what applies to you.
A. Foreign Bank Account
Fill the following:
Country name
Bank name
Account number
Account opening date
Peak balance during the year
Whether the account is still active
Peak balance = highest balance at any time during the year, not year-end balance.
B. Foreign Investments (if any)
For shares / ESOPs / funds:
Name of entity
Country
Nature of interest
Date of acquisition
Total investment value
C. Foreign Property (if any)
Mention the following:
Country
Type of property
Ownership details
D. Other Assets (if applicable)
Any asset not covered above but held outside India.
Do not guess values. Use reasonable and honest figures.
Step 6: Check If Income Was Already Declared
After filling Schedule FA:
Ensure income from foreign sources (if any) is included in:
Salary
Business income
Capital gains
Other sources
If income was already taxed earlier, do not remove or change it.
Step 7: Recalculate Tax & Submit the Revised Return
Review the entire return
Confirm tax payable/refund remains correct
Submit the revised return
E-verify immediately (very important)
Without verification, the revised return is invalid.
Step 8: Respond to the Notice (If required)
If the notice requires a response:
Go to e-Proceedings / Compliance
Select the notice
Mention that:
Revised return has been filed
Schedule FA has been updated
Attach acknowledgement number
Keep the reply short and factual.
Common Mistakes to Avoid
Ignoring the notice Leaving Schedule FA blank again Guessing incorrect balances Filing revised return but not verifying Assuming PayPal/Wise/etc. don’t count
What Happens After This?
In most cases:
The department accepts the correction
The notice is closed
No penalty is imposed
As long as:
Income is declared Tax is paid Disclosure is complete
Final Tip
Foreign asset disclosure is about transparency, not punishment.
If you realise a mistake:
Correct it early
Explain it clearly
Stay compliant going forward
If you want help with:
Checking whether Schedule FA applies to you
Correctly calculating peak balance
Drafting a notice reply
Filing a revised return safely
You can always take professional help before it escalates.
