Invested in US Stocks From India? Make Sure Your ITR Reflects Them Correctly

If you invest in US stocks from India, it is worth taking a moment to recheck how those investments were reflected in your income tax return. As overseas investing has become more common, tax reporting around foreign assets has also tightened. What earlier slipped through unnoticed is now far more visible.

This is not about anything new or unexpected. It is simply about making sure disclosures already required under Indian tax law have actually been made.

US Stock Investing From India: Where ITR Filings Usually Go Wrong

Most issues do not come from complex tax positions. They come from assumptions. Many investors believe that very small US investments do not need disclosure, or that reporting becomes necessary only if profits are booked. 

Some even assume that dividends which are automatically reinvested do not count as income worth mentioning. These beliefs are widespread, but they are incorrect. For an Indian resident who is classified as Resident and Ordinarily Resident, foreign asset disclosure is unconditional.

It does not depend on the size of the investment, whether a gain or loss was made, or whether income was withdrawn or reinvested.

Why Does Income Tax Dept Sometimes Reach Out?

India receives information on foreign financial assets through global data-sharing systems such as FATCA and CRS. US brokers report details of investor holdings, which eventually flow through to Indian tax authorities. That data is routinely compared with what has been reported in income tax returns.

When something appears in third-party information but not in the return, the department may send an email or message asking the taxpayer to review their filing. These communications are typically worded as reminders. They are meant to prompt correction, not to allege wrongdoing.

What Do You Need to Disclose in Your ITR Filing?

Foreign details in your Income Tax Return (ITR) are not captured in just one place. Different parts of the return serve different purposes.

Schedule FA is where you list your foreign assets. This covers things like US stocks, ETFs and your foreign brokerage account. If the account or investment existed at any time during the year, it needs to be disclosed. It does not matter if you sold everything later or ended the year with a zero balance.

Any income from US investments is reported in the regular income sections of the return. Dividends and interest are shown as income, and profits from selling US stocks are reported under capital gains, just like shares bought in India.

Schedules FSI and TR are relevant only if tax was paid abroad. For instance, if US tax was deducted from dividends, these schedules help you claim credit for that tax under the India-US Double Taxation Avoidance Agreement (DTAA) treaty.

If no foreign tax was paid, you may not need these schedules, but you still need to disclose the assets and income.

What If You Missed Disclosing Foreign Assets in Your ITR?

If US stock details were not disclosed in the original ITR, the way to correct this is by filing a revised return under section 139(5).

Here’s a step-by-step guide to do this:

1. Log in to the Income Tax e-filing portal
2. Navigate to e-File → Income Tax Return
3. Select the relevant Assessment Year
4. Choose Start New Filing
5. Select Revised Return under section 139(5)
6. Update Schedule FA and relevant income schedules
7. Complete Schedule FSI/TR where foreign tax credit applies
8. Verify using broker tax statements and submit

It is worth mentioning that broker tax statements are usually sufficient to fill in the required information. The portal interface may change slightly over time, but the core steps remain the same.

Where to Find Schedule FA, Other US Stocks Tax Documents

You can find your tax reports directly within the INDmoney app.

• From your US Stocks account, go to Wallet Balance and scroll down to the Tax Documents section.
• Alternatively, tap on your profile picture, scroll down, and select Tax Report. Your US Stocks tax reports will be available there.

These are the key reports and details you may need while filing taxes in India for your US stock investments:

1. Capital Gains Statement: Shows profits or losses from selling US stocks.
2. Form 67: Used to claim credit for tax withheld on US dividends. This helps ensure foreign income and tax credits are reported correctly.
3. Schedule FSI: For reporting income earned outside India, such as US dividends or gains. Applicable to Indian residents.
4. Schedule TR: Summarises the foreign tax relief claimed in India, for example tax withheld on US stock dividends.
5. Schedule FA: Used to disclose foreign assets. If you held US stocks at any time during the year, they must be reported here, regardless of gains or losses.

ITR Timeline that You Need to Remember

A revised income tax return can generally be filed up to 31st December of the relevant assessment year, unless an assessment has already been completed earlier. For example, for assessment year 2025–26, the usual outer limit is 31 December 2025.

Final Thought

Global investing now comes with global transparency. For Indian residents, especially those classified as ROR, foreign asset disclosure is a clear requirement. Taking the time to review and correct filings where needed is simply part of staying compliant. 

Done early, it avoids unnecessary back-and-forth and lets investors focus on what actually matters: building their portfolios over the long term. If you were someone who was confused about this matter, hope this blog helped you out.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms and to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. INDmoney Global (IFSC) Private Limited, Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355.