New Delhi, June 17, 2025 – The Central Board of Direct Taxes (CBDT) has introduced a major revision tightening foreign asset disclosure norms for Non-Resident Indians (NRIs). Under updated regulations applicable for the upcoming Assessment Year (AY) 2025–26, any NRI holding foreign assets valued at ₹50 lakh or more must now include Schedule FA in their Income Tax Return (ITR‑2) filing. This measure renders the disclosure of foreign bank accounts, securities, real
estate, and other non‑Indian assets mandatory.

 Why this matters for NRIs:

Coverage threshold: Foreign assets up to ₹50 lakh are now reportable—earlier, the threshold stood at ₹20 lakh (excluding immovable property) (indiafilings.com, taxroutine.com).

Harsh penalties: Non-disclosure results in a flat penalty of ₹10 lakh per year under Section 43 and taxation at 30%, plus a 300% penalty on evaded tax under Section 41 (taxroutine.com).

Criminal liabilities: Wilful omission may lead to prosecution—with rigorous imprisonment of up to seven years (taxroutine.com).

 Deadline & Compliance:

Filing deadline: NRIs must file the revised ITR‑2 (FY 2024–25) including Schedule FA by July 31, 2025—extension unlikely for foreign asset disclosures.

Penalty scenario: Failure to file timely or accurately attracts steep financial and criminal consequences.

 Pro Tips for NRIs:

Check your eligibility for ITR‑2—typically required for individuals earning over ₹50 lakh or holding foreign assets (fortuneindia.com,
taxroutine.com).

Comprehensive asset reporting: Disclose foreign bank accounts, investments, real estate, cryptocurrency, etc.

Source documentation: Maintain proof—acquisition, valuation, income earned—for each foreign asset.

Revised return: Missed Schedule FA? You can file a revised return by Dec 31, 2025 (FY 2024–25) to avoid penalties (taxroutine.com).

Consult tax professionals: A proactive approach can prevent heavy fines or legal complications.

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In Summary:

Threshold: ₹50 lakh foreign assets → mandatory Schedule FA

Penalties: ₹10 lakh/yr + 30% tax + 300% penalty; criminal prosecution possible

Deadline: July 31, 2025

Action: File ITR‑2 with Schedule FA and keep documentation ready

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What this means for global Indians: The CBDT’s move underscores India’s commitment to cross-border tax compliance. NRIs must now adopt rigorous self-reporting to avoid punitive action. The enhanced
disclosure requirements and tough penalties reinforce the global trend toward transparency under AEOI frameworks such as CRS and FATCA.

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 Take Action Now:

Download ITR‑2 form from the Income Tax website

Gather asset statements (bank, brokerage, property)

Upload Schedule FA accurately

Submit your return before July 31, 2025

Need help? Contact your tax advisor!

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Keywords: NRI foreign assets, Schedule FA, ITR‑2 filing, July 31
deadline, CBDT rules, crypto disclosure, 300% penalty.

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Disclaimer: This information is accurate as of June 17, 2025. Tax regulations are subject to change—always refer to official CBDT notifications or consult your tax advisor.

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Related Reads:

Key 2024‑25 ITR Form Changes

Threshold Increase to ₹20 Lakh Relief

How Revised Returns Avoid Penalties

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Authored by: nriglobe.com Tax Desk
Date: June 17 2025