Hi @amanag
Just for clarification, these shares are not sold yet, these 7 RSUs are there in my company provided brokerage account. In point 1, Does “excercise” refers to vest of shares ? What would be the amount paid for excercise of shares? Is it total value of 10 shares or 7 shares?
Hi @amanag
it will be the amount that you have paid to exercise the option to vest the shares, the total value of 10 shares will be taken.
Also, the perquisite value will be considered an initial investment.
For Example:
RSU - 1000
25% will be vested each year,
2017-18, 2019-20, 2020-21, 2021-22
Shall we have to fill Schedule FA for each,
Means for AY:2018-19
Schedule FA , Table A3 - 250 Shares
Or else Have to fill Schedule FA after the completion of vesting period
i.e AY:2022-23
Schedule FA , Table A3 - 1000 Shares
You will have to fill out Schedule FA Table A3 for all the years, beginning 2017-18.
Hi,
Thanks for the article. I have been trading in crypto for around 5 years now and mostly on foreign exchanges like Binance, kucoin, bittrex. I recently got to know about schedule FA as I received some ESOPs from my US based company.
I got worried about having had crypto holdings and trading on foreign exchanges from the last ~5 years and not having made a schedule FA declaration due to lack of knowledge of its existence.
I reached out to an experienced CA’s office to file my returns for this year and for any proactive action required on previous years w.r.t the above. The CAs office suggested and filed my ITR and crypto holdings and transactions on these exchanges under schedule FA (other assets) for this year, but they did it very casually. For example, they declared random peak values, and chose the country where assets are held as USA, whereas these exchanges are neither necessarily located in USA, nor are we aware of exact physical location of their servers (as some argue crypto is located in cloud and physical location of servers is the location of the assets)
In this scenario, how should I proceed? I have not e-verified the return yet for the fear of having misreported details under schedule FA. Should a revised return be filed? If yes,
a) how should I proceed with declaring crypto details on these foreign exchanges under schedule FA?
b) what proactive action can I take regarding previous years?
Hi @Anuj_Sharma
Your query seems to be more of a personalized tax filing query. Make sure you e-verify within 30 days of filing the return, else your return will be treated as invalid and you might have to face consequences of filing a late return.
You can Ask an Expert who will be able to guide you better after looking at the actual income situation.
If I have received an RSU on October 2023 with three year locking period, then I should report the same in ITR (Schedule FA) of FY 2023-24 or I can start reporting only after locking period is over?
Hi @Palanisamy_K,
Yes, you will have to report the RSUs under Schedule FA(Foreign Assets) while filing the ITR as foreign holdings are mandatory to disclose.
Hope this helps!
Hi team, I missed filing schedule fa for the year 2023-2024 and seems the revised date of 31 dec 2023 is also over. Is there any option left for me to file schedule fa for 2023-24 now at this point of time
Hello Ritesh,
Yes, ITR - U can be filed now.
We do provide MEET advisory, where a tax expert from our team can connect with you online and help you file your taxes in 30 minutes.
Thank you.
But isn’t ITR-U only applicable if there’s an additional tax liability?
Hello @Anonymous123
Yes, ITR U can be filed only if we pay any additional tax. We had assumed you might be having some income from Foreign asset and thus adding foreign asset will also increase income and tax thereon.
In case, no income increases compared to the previous ITR filed and there is no additional tax liability, ITR U will be invalid.
Thank you.
I wonder if it’s possible to remove any existing deduction claim to increase the taxable income introducing an additional tax and then updating the ITR with schedule FA + pay the additional tax and required penalty.
Hello,
Yes, it is possible to remove any existing deduction or add any income to increase the tax liability and add Schedule FA details and re-file the ITR.
Our team of tax experts can assist you for the same. You can book a MEET using the below link for getting the expert assistance:
Thank you.
Hello @JDS
Yes, schedule FA has to be filled by ROR.
Residential Status is determined based on your stay in India for a particular Financial year.
If you are a ROR for a particular FY, then you have to fill Schedule FA with the details for entire period starting from January to December 31st.
Lets understand it through an example:
For current FY 2023-24, if your residential status is ROR, then you have to fill schedule FA and disclose details pertaining to period January 2023 to December 2023 when you file your ITR in June 2024.
Thank you.
Hello @JDS
Yes, since your residential status for FY 2023-24 is considered as ROR, you have to declare for January to March 2023 as well.
Thank you.
Hello @JDS
CBDT have released the ITR forms where they have specified the schedule to report Income from Crypto. You have an option to report it either as Capital Gains or Business Income.
However, there is no specification for reporting of crypto in Schedule FA. Thus, you can report it in same manner as stocks or assets.
Thank you.
My father owns a private business in Middle East. He is NRI for over 10 years.
He wants to gift his company shares to wife, his son & his son’s wife. Note: Wife, son & son’s wife are Resident of India.
Are there any tax implications here ?
Are there any permissions required to be taken from RBI ? Any returns to be filed ? Any compliances with FEMA ?
Any inputs on the above subject would be of great help.
Thanks,
Amit
Hi @amits07
From the tax perspective, there shall be no such implications.
However, if they are a resident of India and they have shares in a foreign company, they will be required to report the same under Schedule FA while filing their ITR.