ForeignAsset Declaration Querries

 Filing the Revised ITR return to complete Foreign Asset Declaration:

As part of the Transparency in Tax Compliance efforts, the Income Tax dept. has been aggressive in serving notices to Individual for non-declaration of Foreign Assets and Income. The recent Webinar by the Income Tax department indicated having served notices to 80K+ taxpayers in Bengaluru.

This compliance requirement has a fast-approaching deadline and needs to be acted upon to avoid wide-ranging financial & legal implications. If you have received a notice and your focus is towards your company allocated Stocks, ESOPS or RSU’s on Etrade then you can use the following tool to quickly draft your FA Declaration sheet. 

eTrade Stock Utility

 

Basic assumptions are as follows:

1. The data required is for January to December 2023
2. Intent is to declare all your stocks that have vested during or before the above period
3. Dividend received during this period needs to be declared
4. Any other proceeds through sale of stock (RSU/ESPP) needs to be declared.
5. RSU's sold under sell to cover also need to be declared.
6. Above mentioned utility only reads data about your current holding (date on which data was downloaded). If you have sold any shares during the given period (January to December 2023) or after the period in consideration (from January 2024 to date) then that data needs to be entered manually from your monthly statements or Orders section of eTrade portal.
7. In Foreign Asset Declaration of ITR A3 has been considered as the applicable section.

 

Furthermore, to address queries on the column "Total Gross Proceeds from Sale or Redemption of investment during the period" do refer to the following points:

 

1. In order to arrive at the values to be entered in this column you will need the FY 22-23 & FY 23-24 Perquisite Tax Break-up / ESOP-RSU Break-up. This will give you the amount refunded to you for covering your Perquisite Tax liability. Ideally, your HR Dept. or PayRoll Dept. should be able to provide you this data on request if they have not given detailed break-up in your Form-16. This is for ESOP's / RSU's vested in 2023 only and the value will be 0 for all units vested in previous years.
2. If you have sold any stocks (RSU/ESPP) during the year of 2023, please review your monthly statements or Orders section from eTrade portal and enter that data manually in the FA_Declaration sheet.

 

Hope you all can get the required data to file your revised ITR.

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