[FAQs] Income Tax Return (ITR) – Reporting of Bank Accounts | Foreign Assets | Unlisted Shares | Cryptocurrencies | Deductions

This guide explains the key reporting and disclosure requirements in the ITR forms for AY 2026-27. It covers Indian bank accounts, primary and secondary addresses, foreign assets and income, foreign tax credit, unlisted shares, provident fund interest, cryptocurrency income and other mandatory disclosures. It also clarifies the applicable schedules, reporting periods and supporting information required while filing the return.

FAQ 1. Is a taxpayer required to disclose all bank accounts he holds during the financial year?

Yes, the ITR forms require taxpayers to disclose details of all bank accounts held in India at any time during the previous year. However, disclosing dormant accounts is excluded.

FAQ 2. Is it mandatory to provide a secondary address in the ITR form?

The ITR Forms applicable for the Assessment Year 2026-27 have introduced a separate field requiring taxpayers to furnish a secondary address, in addition to the primary address.

Earlier, the ITR Forms required disclosure of only one address; now the revised forms have introduced the concept of a Primary Address and a Secondary Address.

While filing the return, the utility first requires the taxpayer to furnish the primary address. Thereafter, it prompts the taxpayer to specify whether the secondary address is the same as the primary address.

If the taxpayer selects “Yes”, the secondary address is automatically populated with the primary address details, and no additional information is required. However, if the taxpayer selects “No”, the details of the secondary address become mandatory and must be furnished before the return can be successfully validated.

FAQ 3. What should be the ‘relevant accounting period’ for reporting foreign assets in Schedule FA?

Reporting in Schedule FA (Foreign Assets) is mandatory for a taxpayer who is a resident in India and:

• He holds any asset outside India
• He has signing authority in any account located outside India or
• He has income from any source outside India.

This schedule is not required to be filed by a taxpayer who is a non-resident (NR) or Not ordinarily Resident (NOR).

Schedule FA requires reporting of assets held outside India. Such reporting is required if those assets are held at any time during the relevant accounting period. Reporting is required even if the asset is held for a single day during the relevant accounting period.

The ITR Forms use the expression “calendar year ending as on 31^st December 2025”. This implies that the assessee shall furnish the details of all foreign assets held between 01-01-2025 and 31-12-2025 in return to be filed for the assessment year 2026-27. Irrespective of the fiscal year followed in the foreign country (like, Australia follows July to June, Costa Rica follows October to September, etc.), the reporting will be made if the specified foreign assets are held on 31-12-2025.

Example 1

Relevant previous year	01-04-2025 to 31-03-2026
Relevant calendar year	01-01-2025 to 31-12-2025
Date of purchase of shares of Google LLC	January 2025
Is the assessee required to furnish the details regarding the foreign assets acquired?	Yes

The assessee is required to furnish the details of Google LLC’s share in ITR applicable for the Assessment Year 2026-27 even if he has not held the foreign asset in the relevant previous year.

Example 2

Relevant previous	01-04-2025 to 31-03-2026
Relevant calendar year	01-01-2025 to 31-12-2025
Date of purchase of shares of Google LLC	January 2026
Is the assessee required to furnish the details regarding the foreign assets acquired?	No

The shares of Google LLC were acquired within the previous year, but after the end of the relevant calendar year. Thus, the assessee is not required to furnish the details of Google LLC’s share in the ITR applicable for the Assessment Year 2026-27. The disclosure requirement for such investment shall only arise in the Tax Year 2026-27.

 

 

FAQ 4. A has a savings bank account in Australia with a peak balance of AUD 20,000 during the calendar year 2025 and also earned interest of AUD 500. While furnishing his Income-tax Return in India, he wants to know which exchange rate should be used to convert these amounts into Indian Rupees?

While furnishing the ITR, any amount denominated in a foreign currency must be converted into Indian Rupees using the Telegraphic Transfer Buying Rate (TTBR) of the State Bank of India (SBI), as applicable on the relevant date.

The relevant date for conversion depends upon the nature of the amount being reported, as explained below:

Particulars	Exchange Rate	Relevant Date
Peak balance in a foreign bank account	TTBR	Date on which the peak balance occurred
Value of investment in a foreign asset	TTBR	Date of acquisition of the investment
Foreign-sourced income	TTBR	Closing date of the relevant calendar year (i.e., 31st December 2025 for AY 2026-27)

TTBR (Telegraphic Transfer Buying Rate) means the rate of exchange adopted by the State Bank of India for buying the relevant foreign currency through telegraphic transfer, having regard to the guidelines issued by the Reserve Bank of India.

For the purpose of reporting foreign assets in Schedule FA for the Assessment Year 2026-27, the relevant reporting period is the calendar year from 1st January 2025 to 31st December 2025.

Taxpayers should avoid using exchange rates available on internet portals or commercial websites merely because they are readily accessible. Such rates may differ from the Telegraphic Transfer Buying Rate prescribed under the Income-tax Rules and may result in incorrect reporting of foreign assets or foreign income. Accordingly, while furnishing the return of income, taxpayers should use the applicable SBI Telegraphic Transfer Buying Rate for the relevant date and retain appropriate records of the exchange rate adopted.

FAQ 5. I paid taxes in a foreign country while working on a project there for three months. How can I claim credit for this in ITR?

If an assessee has paid tax in any foreign country or specified territory outside India, he shall be allowed a credit for the same by way of deduction or otherwise. The credit shall be allowed in the year in which the assessee offered such income to tax or assessed to tax in India. Rule 128 of Income-tax Rules 1962 lays down broad principles and conditions for the computation and claim of foreign taxes paid in overseas countries by the resident taxpayers.

A statement of foreign income offered to tax and the foreign tax deducted or paid on such income is required to be submitted in Form No. 67. The statement specifying the nature of income and foreign tax deducted or paid is required to be furnished as per the due dates mentioned below:

Return filing under	Due date of filing documents to claim FTC
Section 139(1), i.e., Original return	On or before the end of assessment year
Section 139(4), i.e., Belated return	On or before the end of assessment year
Section 139(8A), i.e., Updated return	On or before the date of filing of return

The form must be furnished electronically through the e-filing portal. Further, the details of relief claimed for taxes paid outside India must be reported in ‘Schedule TR’ of the ITR form.

FAQ 6. A has a savings bank account in Australia with a peak balance of AUD 20,000 during the calendar year 2025 and also earned interest of AUD 500. While furnishing his Income-tax Return in India, he wants to know which exchange rate should be used to convert these amounts into Indian Rupees?

While furnishing the ITR, any amount denominated in a foreign currency must be converted into Indian Rupees using the Telegraphic Transfer Buying Rate (TTBR) of the State Bank of India (SBI), as applicable on the relevant date.

The relevant date for conversion depends upon the nature of the amount being reported, as explained below:

Particulars	Exchange Rate	Relevant Date
Peak balance in a foreign bank account	TTBR	Date on which the peak balance occurred
Value of investment in a foreign asset	TTBR	Date of acquisition of the investment
Foreign-sourced income	TTBR	Closing date of the relevant calendar year (i.e., 31st December 2025 for AY 2026-27)

TTBR (Telegraphic Transfer Buying Rate) means the rate of exchange adopted by the State Bank of India for buying the relevant foreign currency through telegraphic transfer, having regard to the guidelines issued by the Reserve Bank of India.

For the purpose of reporting foreign assets in Schedule FA for the Assessment Year 2026-27, the relevant reporting period is the calendar year from 1st January 2025 to 31st December 2025.

Taxpayers should avoid using exchange rates available on internet portals or commercial websites merely because they are readily accessible. Such rates may differ from the Telegraphic Transfer Buying Rate prescribed under the Income-tax Rules and may result in incorrect reporting of foreign assets or foreign income. Accordingly, while furnishing the return of income, taxpayers should use the applicable SBI Telegraphic Transfer Buying Rate for the relevant date and retain appropriate records of the exchange rate adopted.

FAQ 7. I paid taxes in a foreign country while working on a project there for three months. How can I claim credit for this in ITR?

If an assessee has paid tax in any foreign country or specified territory outside India, he shall be allowed a credit for the same by way of deduction or otherwise. The credit shall be allowed in the year in which the assessee offered such income to tax or assessed to tax in India. Rule 128 of Income-tax Rules 1962 lays down broad principles and conditions for the computation and claim of foreign taxes paid in overseas countries by the resident taxpayers.

A statement of foreign income offered to tax and the foreign tax deducted or paid on such income is required to be submitted in Form No. 67. The statement specifying the nature of income and foreign tax deducted or paid is required to be furnished as per the due dates mentioned below:

Return filing under	Due date of filing documents to claim FTC
Section 139(1), i.e., Original return	On or before the end of assessment year
Section 139(4), i.e., Belated return	On or before the end of assessment year
Section 139(8A), i.e., Updated return	On or before the date of filing of return

The form must be furnished electronically through the e-filing portal. Further, the details of relief claimed for taxes paid outside India must be reported in ‘Schedule TR’ of the ITR form.

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[1] Circular No. 18/2019, dated 08-08-2019