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

No. Disclosure in Schedule FA is mandatory for a Resident and Ordinarily Resident regardless of value — even one vested share. Separately, the Finance Act 2026 removed the ₹10 lakh penalty where aggregate non-immovable foreign assets are ₹20 lakh or less (retrospective from 1 October 2024), but the reporting obligation itself has no threshold.

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.

I have never declared RSUs I've held since 2016, but I paid tax on them each year through Form 16 — can I declare them now?

Yes, and this is a very common situation. Paying tax via Form 16 means the income side was handled correctly; only the Schedule FA asset disclosure was missed. For the current and any still-open assessment year, file a complete Schedule FA going forward. For the years already closed, this exact fact pattern — income taxed, disclosure missed — is what the FAST-DS 2026 amnesty scheme is designed to settle for a flat ₹1 lakh fee once it opens. Discuss the older years with a chartered accountant rather than deciding on your own.

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

6 min read · Updated July 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. The only carve-out: aggregate non-immovable foreign assets of ₹20 lakh or less escape the penalty (Finance Act 2026). The disclosure obligation itself has no threshold.

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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, separate from any tax. Each defaulting year is its own ₹10 lakh. (Since the Finance Act 2026, the penalty does not apply where aggregate non-immovable foreign assets stay within ₹20 lakh — see below.)
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.

One relief exists: the Finance Act 2026 (section 160) amended the Black Money Act retrospectively from 1 October 2024, so the ₹10 lakh penalty under sections 49/50 does not apply where the aggregate value of foreign assets (other than immovable property) is ₹20 lakh or less. Above that, there is no de minimis — and the disclosure obligation itself applies regardless of value.

"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.

"I've held RSUs since 2016, paid tax every year via Form 16, but never filed Schedule FA — can I fix it now?" Yes. This is one of the most common situations we hear about, and it is exactly the case the FAST-DS 2026 amnesty scheme targets: income already taxed, only the asset disclosure missing. See how to check which years actually have a gap before assuming every year is affected.

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. If your income was already taxed and only the disclosure was missed, the new FAST-DS 2026 amnesty scheme may let you settle all past years for a flat ₹1 lakh fee once it opens.
Going forward: file Schedule FA every year you are an ROR, even with zero balance if the account was open.

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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.

Yes. Income already taxed, only Schedule FA missed, is exactly the fact pattern the FAST-DS 2026 amnesty scheme is built for. File correctly going forward, and discuss the closed years with a CA.

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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.