An Ordinary Resident having assets out of India is required to report assets located outside India in Schedule FA while filing income tax return in India.
Earlier, the reporting was required to be made as per accounting period i.e. period adopted for closing of accounts and tax filings by foreign jurisdictions in which assets are located. So, it could be March 31, June 30, or December 31.
To eliminate the confusion, Schedule FA of new ITR forms require reporting of foreign assets held at any time during the calendar year ending on December 31, 2021.
As a result, if an asset is purchased in January 2022, it does not have to be reported in Schedule FA of ITR for FY 2021-22 but to be reported while filing ITR for FY 2022-23 (i.e. next year).
