If you are a Resident and Ordinary Resident (ROR) in India and have foreign assets or income, it is mandatory to report them in your Income Tax Return (ITR). Failing to do so can lead to serious penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Who Needs to Report Foreign Assets?
Only individuals who qualify as Resident and Ordinarily Resident under Indian tax laws need to report foreign assets.
If you are an NRI or Resident but Not Ordinarily Resident (RNOR), you are not required to report foreign assets.

What Qualifies as Foreign Assets?
Foreign assets include:
Bank accounts held outside India
Foreign stocks, mutual funds, or bonds
Immovable property (like house or land abroad)
Interests in foreign companies or trusts
Any other capital or financial interest located outside India

Where to Report in ITR?
If you are filing ITR-2 or ITR-3, there’s a specific Schedule FA (Foreign Assets) where you must disclose:
Type of asset
Country and address
Date of acquisition
Income earned, if any
Nature of ownership (direct/beneficial)

Why Is It Important to Report?
Legal Requirement: Mandatory under Indian Income Tax Act and Black Money Act.
Avoid Penalty: Non-disclosure can attract penalties up to ₹10 lakhs per year of default.
Transparency: Enhances financial compliance and protects from legal risks.

What If You Forgot to Report?
If you unintentionally missed reporting your foreign assets:
You can revise your return (if within time).
Consult a tax expert to ensure proper disclosure and compliance.
Voluntary disclosure is better than waiting for a tax notice.