Originally due on July 31, 2025, the date for filing the income tax return has been extended to September 15, 2025.
According to the Financial Express, while filing ITRs, taxpayers with overseas assets and foreign income have to be cautious. Choosing the right ITR form for filing foreign income, Filing Schedule FA and Schedule CG, and filing Form 67, taxpayers cannot afford to miss out on any disclosures while reporting foreign assets and income to the tax authorities.
India receives detailed information about financial accounts under the Common Reporting Standard and the Foreign Account Tax Compliance Act. India receives information about financial accounts held by its residents in foreign jurisdictions.
The account holder's name, address, tax identification number, bank account number and balance, including income details such as interest, dividends, and other financial proceeds.
The Income Tax Department knows the global income of its resident taxpayers, and FATCA details help them to identify taxpayers who may not have disclosed their foreign assets and income.
If you have investments in US stocks, you need to disclose complete details by filling up the correct ITR form. “Resident and Ordinarily Resident (ROR) individuals in India who hold investments in the US stock market are required to report their foreign income and assets while filing their Income Tax Return (ITR). The appropriate ITR form in such cases is generally ITR-2, provided the individual does not have business income. For those with business or professional income, ITR-3 may be applicable,” says CA (Dr.) Suresh Surana.
For filing ITRs, Indian investors buying US stocks cannot use Form ITR-1 or ITR-4. Depending on their income or foreign assets, they must file their income tax returns.
“If tax has been withheld in the US, the taxpayer may claim foreign tax credit (FTC) under the Double Taxation Avoidance Agreement (DTAA), subject to prescribed conditions. To avail this credit, it is mandatory to file Form 67 before submitting the ITR and to retain proof of taxes paid abroad,” says Dr. Surana.
