ITR-2 and Foreign equity
2 min readDec 28, 2020
If you’re investing in foreign equity, you’ll need to file ITR-2 irrespective of your income.
How to activate Schedule FA
Go to Part B- TTI, see section number 19. Once you mark this as Yes , schedule FA will be enabled.
How to fill Schedule FA
Assumption: There are no other financial assets outside India except foreign equity.
All of the foreign equity holdings will go into section A3.
You’ll need to add details of all of the foreign equity that you hold during the financial year even if you bought it in the previous financial years.
You’ll need to add details of all the transactions here even if these are for the same company. Lets consider one example with two purchases of the same company in the financial year.
Bought 2 Google at USD X/per share on 10 April, 2019
Bought 2 Google at USD Y/per share on 10 May, 2019Extra Information required for computations below:During the financial year after the first purchase(10/04/2019 - 31/03/2020), lets day Google share price was highest on 15 April, 2019. During the financial year after the second purchase(10/05/2019 - 31/03/2020), lets day Google share price was highest on 10 September, 2019.
So, there will be two entries:
=========================================================
Entry 1
=========================================================Country code and name: United States of America
Name of entity: GOOG
Address of entity: XXXXXX
ZIP code: XXXXXX
Nature of entity: EquityDate of acquiring the interest: 10/04/2019Initial value of the investment: 2 * X * exchange_rate(10/04/2019)Peak value of investment during the period:
2 * share_price(15/04/2019) * exchange_rate(10/04/2019)Closing balance:
2 * share_price(31/03/2020) * exchange_rate(31/03/2020)Total gross amount paid w.r.t. the holding during the period:
2 * X * exchange_rate(10/04/2019)Total gross proceeds from sale of investment during the period:
0=========================================================
Entry 2
=========================================================Country code and name: United States of America
Name of entity: GOOG
Address of entity: XXXXXX
ZIP code: XXXXXX
Nature of entity: EquityDate of acquiring the interest: 10/05/2019Initial value of the investment: 2 * Y * exchange_rate(10/05/2019)Peak value of investment during the period:
2 * share_price(10/09/2019) * exchange_rate(10/04/2019)Closing balance:
2 * share_price(31/03/2020) * exchange_rate(31/03/2020)Total gross amount paid w.r.t. the holding during the period:
2 * Y * exchange_rate(10/04/2019)Total gross proceeds from sale of investment during the period:
0
