Missed a foreign asset in your ITR? Revised, ITR-U or FAST-DS?

A foreign bank account, foreign shares or RSUs left out of your return can cause two separate problems.

• Missed income, such as interest, dividends or gains. This is dealt with under the Income-tax Act, 1961.
• Missed reporting in Schedule FA, the part of the ITR that lists foreign assets. This is dealt with under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Section 43 of that Act allows a penalty of ₹10 lakh on a resident (other than a not-ordinarily-resident) who leaves out information about a foreign asset, or gives inaccurate particulars, in a return filed under section 139(1), 139(4) or 139(5). The section does not apply where the total value of such assets, other than immovable property, is within ₹20 lakh. This relief took effect from 1 October 2024, so take advice on how it applies to earlier years.

Many people have only the second problem. For example, RSU income was taxed as salary, but the shares were never shown in Schedule FA. Pick the fix that matches your problem.

The Finance Act, 2026 changed section 139(5) from 1 March 2026. A return for AY 2026-27 can now be revised until 31 March 2027, or until assessment is completed if that comes first. Section 234-I adds a fee of ₹1,000 if total income is up to ₹5 lakh and ₹5,000 otherwise. The department’s FAQs apply it to revisions filed after 31 December 2026, though the section’s own wording is less clear. Check the latest notification before you rely on these dates.

A revised return replaces the original, and section 43 names it. You add the asset to Schedule FA, add missed income with interest, and claim foreign tax credit, where eligible, through Form 67. If you never filed for AY 2026-27, file a belated return under section 139(4) by 31 December 2026, with the late fee under section 234F.

One caution: if you cannot explain how the asset was funded, take advice before revising. Disclosing it may invite proceedings under the Black Money Act (see Option 3).

Section 139(8A) allows an updated return within 48 months from the end of the relevant assessment year. You pay the tax and interest, plus an additional tax under section 140B on both:

Assessment year	Additional tax if filed by 31 Mar 2027	From 1 Apr 2027	Last date
2025-26	25%	50%	31 Mar 2030
2024-25	50%	60%	31 Mar 2029
2023-24	60%	70%	31 Mar 2028

For AY 2022-23, sources differ on whether the extended window applies, so confirm on the e-filing portal.

What it fixes: the missed income only. Section 43 lists returns under section 139(1), (4) and (5). An ITR-U is filed under section 139(8A), so it does not undo the lapse in the original return.

Limits to know:

• It must increase tax. It cannot reduce tax or create a refund.
• You must pay the tax, interest and additional tax before filing, or the return is defective.
• It is barred if a search or survey covers that year, if assessment for that year is pending or complete, or if you have already filed one. Since 1 March 2026, an ITR-U is allowed after a section 148 notice, within the time given in the notice, with a further 10% additional tax.
• It is barred if information about you under a tax treaty (section 90 or 90A), or under the Black Money, PMLA or Benami laws, was communicated to you before you file.

The Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 sits in sections 130 to 144 of the Finance Act, 2026. It began on 16 August 2026. You file Form 1 on the e-filing portal by 31 December 2026, and assets are valued as on 31 March 2026. You must have been a resident in India in the year concerned.

	Category A	Category B
Covers	Asset with unexplained source, and/or foreign income never taxed	Asset bought from income already taxed in India, or earned while non-resident, but left out of Schedule FA
Limit	Total up to ₹1 crore	Asset value up to ₹5 crore
Cost	30% tax plus an equal additional amount, so 60%	Flat ₹1 lakh

The limits are cut-offs. Above them, the scheme is not available. It also excludes proceeds of crime where PMLA proceedings are pending, and years where a Black Money Act assessment is already complete.

After you file, the department issues an order with the amount payable (Form 2). You pay within two months from the end of the month in which you receive it. A further extension of up to two months is allowed, with interest. You then intimate payment (Form 3) and receive a certificate (Form 4).

What you get: immunity from tax, penalty and prosecution under the Black Money Act for what you validly declare. What you give up: the amount paid is not refundable, and a declaration with false or suppressed material facts is void. The scheme does not by itself settle other laws, such as FEMA.

Your situation	Route	Last date
Omission only in AY 2026-27	Revised return, or belated return with late fee if none was filed	31 Dec 2026 fee-free; 31 Mar 2027 with fee
Earlier year; asset funded from taxed or non-resident income; income reported; only Schedule FA missed	FAST-DS Category B (nothing, if within ₹20 lakh and not immovable)	31 Dec 2026
Earlier year; asset explained, but income also missed	ITR-U for the income plus Category B for the asset. Compare this with declaring the income under Category A	ITR-U: 48-month window; FAST-DS: 31 Dec 2026
Earlier year; source of asset unexplained, total up to ₹1 crore	FAST-DS Category A	31 Dec 2026
Values above the FAST-DS limits	Revise AY 2026-27; ITR-U for income; specific advice on the reporting lapse	As above

Follow these steps in order:

1. List each year from AY 2022-23 and note what was missed: the asset, the income, or both.
2. Check your AIS and the statements from your foreign banks and brokers.
3. Confirm your residential status for each year.
4. Work out how each asset was funded. Taxed salary and remittances from taxed income are explained sources.
5. Compare values with the ₹20 lakh, ₹1 crore and ₹5 crore limits.
6. Revise AY 2026-27 first, then make the FAST-DS declaration well before 31 December 2026.

• Explained asset: a possible ₹10 lakh penalty for each year under section 43. In Vinil Venugopal v. DDIT (Inv.) (14 October 2025), a Special Bench of the Mumbai Tribunal held that this penalty is discretionary, not automatic. It is a Tribunal ruling, and each case turns on its facts.
• Unexplained asset: tax at 30% under section 3, and the Assessing Officer may direct a penalty of three times that tax under section 41. That is up to 120% of value, plus possible prosecution.
• Missed income: reassessment under the Income-tax Act, with interest and penalty.