Resident Indian taxpayers who purchased Bank of America, Nvidia, Tesla, or other US stocks between January and March 2026 are exempt from reporting these assets under Schedule FA of Income Tax Return (ITR) for AY 2026-27. According to experts at Taxmann, this exemption applies specifically to stocks purchased during the last quarter of FY 2025-26, as they fall outside the relevant accounting period for foreign asset reporting.
The relevant accounting period for Schedule FA reporting for AY 2026-27 is Calendar Year 2025, spanning from January 1, 2025, to December 12, 2025. As reported by Taxmann experts, the ITR Forms use the expression "calendar year ending as on 31st December 2025," requiring assessees to furnish details of all foreign assets held between these dates. This means stocks purchased during the last quarter of FY 2025-26, or January-March 2026, do not need to be reported in the current year's ITR.
Stocks purchased during January-March 2025 must be reported under Schedule FA when filing ITR for AY 2026-27, as the date of purchase falls within the relevant accounting period. However, stocks purchased during February 2025 or later are exempt from current year reporting, even if held for just a day during the relevant period. For example, Nvidia stocks purchased in February 2025 would not need to be reported, while Bank of America stocks purchased on December 31, 2025 would require reporting under Schedule FA.
Under Schedule FA, resident Indian taxpayers must report any asset held outside India, including income from foreign sources and disclose whether they have signing authority over any account located outside India. According to Taxmann, reporting becomes mandatory when foreign assets are held at any time during the relevant accounting period, even for just a single day. The due date to file ITR-1 and ITR-2 for AY 2026-27 is July 31, 2026, while the due date for non-audit business income is August 31, 2026.
