Is there a minimum value below which I don't need to disclose foreign assets?

No. Unlike foreign bank accounts (which have a small aggregate-balance relief), there is no value threshold for disclosing foreign equity such as RSUs and ESPP in Schedule FA. Even one vested share must be reported by a Resident and Ordinarily Resident.

What is the penalty for not disclosing foreign stock in Schedule FA?

Under Section 43 of the Black Money Act 2015, failure to disclose a foreign asset in your return can attract a flat penalty of ₹10,00,000 for each year of default, separate from any tax on undisclosed income, which is taxed at 30% plus a penalty of three times the tax.

Can old years be reopened?

Yes. Cases involving foreign assets can be reopened for up to 16 assessment years, and the Black Money Act applies regardless of when the asset was acquired. India also receives your account data automatically through FATCA and CRS.

Black Money Act & Schedule FA — The Penalty for Not Disclosing Foreign Stock

6 min read · Updated June 2026 · Applies to AY 2025-26 and AY 2026-27

The short version: Not disclosing your US RSUs, ESPP or Fidelity account in Schedule FA can cost a flat ₹10 lakh penalty per year under the Black Money Act — even if all the income was already taxed and even if the asset is small. There is no value threshold for foreign equity.

If you are a Resident and Ordinarily Resident (ROR) holding shares in a US employer — RSUs, ESPP, or a Fidelity NetBenefits brokerage account — you must disclose them in Schedule FA of ITR-2 or ITR-3. Skipping it is not a small omission. It is governed by the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which is deliberately harsh.

What the Black Money Act can impose

₹10,00,000 flat penalty per year (Section 43) — for failing to disclose a foreign asset in your return, independent of the asset's value and separate from any tax. Each defaulting year is its own ₹10 lakh.
Tax at 30% + 3x penalty on undisclosed foreign income (Sections 3, 41) — if income tied to the asset was also not declared, tax is a flat 30% with no slab benefit, plus a penalty of three times that tax.
Prosecution — wilful default can mean rigorous imprisonment of 6 months to 7 years.
16-year lookback — assessments involving foreign assets can be reopened for up to 16 years, far beyond the normal limitation.

The small relief that exists (aggregate balance up to ₹5 lakh) applies only to foreign bank accounts — not to equity like RSUs and ESPP. For foreign stock there is no de minimis.

"But my income is already in Form 16 / I already paid tax"

That protects you on the income side, not the disclosure side. Schedule FA is an asset-reporting obligation. The Section 43 penalty is for non-disclosure of the asset in your return — it applies even when every rupee of income was correctly taxed. Reporting RSU perquisite in salary and capital gains in Schedule CG does not satisfy Schedule FA.

India already has your data — FATCA & CRS

The US shares Indian residents' account information with India under the FATCA inter-governmental agreement, and 100+ countries exchange data under CRS. Fidelity reports account holders who are Indian tax residents. So the tax department can match what you disclosed against what your broker reported — a mismatch is exactly what triggers a notice.

What to do if you missed it

Open years: file a revised or belated return with the correct Schedule FA as soon as possible.
Older years: speak to a CA about voluntary correction. Disclosing proactively, before any notice, is always treated more leniently than being caught.
Going forward: file Schedule FA every year you are an ROR, even with zero balance if the account was open.

FAQ

No threshold for foreign equity. RSUs and ESPP must be disclosed by an ROR regardless of value — even a single vested share.

Section 43: a flat ₹10,00,000 per year of non-disclosure, separate from tax. Undisclosed income is taxed at 30% plus a 3x penalty.

Yes — up to 16 years for foreign-asset cases, and the Act applies regardless of acquisition date. FATCA/CRS gives the department your data automatically.

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Related guides

Informational only, based on current law (FY 2025-26 / AY 2026-27). Penalty provisions are summarised; consult a chartered accountant for your situation.