ITR 2026: New Foreign Asset Rules Hit Indian Taxpayers

Financial interests in any entity outside India demand the investment value at cost, the nature and amount of income accrued, and the portion of foreign source income chargeable to tax in India, along with the relevant ITR schedule where the income was offered. Foreign immovable property holdings need the same cost, income, and tax-schedule breakdown.

Other capital assets held abroad, excluding stock-in-trade and business assets, also require cost, income, and tax-schedule details. Foreign accounts where the taxpayer holds signing authority but which are not reported in earlier tables must disclose the peak balance or total investment value at cost.

Trusts established under foreign law in which the taxpayer serves as trustee, beneficiary, or settlor must report the amount of income derived that is chargeable to tax in India. Any other income from foreign sources not covered above must also be disclosed, along with the amount chargeable.

The expanded schedule means taxpayers with overseas holdings need to gather more granular data before filing. Missing or incomplete disclosures could trigger scrutiny from the tax department.