Tax
This article outlines the next steps for taxpayers who receive an email or SMS regarding missed or incomplete Schedule FA, based on FATCA/CRS data-sharing agreements.
This article is a part of our detailed article series on various communications that the income tax department sends you. Ensure you have read the other parts here:
This article outlines the next steps for taxpayers who receive an SMS regarding significant mismatches in their income tax filing and IT records.
If you’re paying rent above ₹50,000/month and haven’t deducted TDS, you could face penalties and must act soon.
This guide explains why you might receive a notice under Section 148A, how to respond effectively, and the new time limits for reassessment along with Frequently Asked Questions (FAQs).
This article tells the next steps to take if you have received an SMS about your past income tax returns which you can amend using the ITR-U facility.
This article tells the next steps to take if you have received an SMS about your 80GGC tax deduction claim made in the past.
This article shows you what do do if you receive this cryptic SMS from the income tax department.
In December 2025, multiple taxpayers received this email from the ITD_Support@insight.gov.in email address of the income-tax department that looked like this:
Income tax action required [NAME] (XXXXXYYYYX) by 31st December.
Data has been shared by the USA authorities showing that you held/earned foreign assets/income in the USA during Calendar Year 2024. However, Schedule Foreign Assets was not included in your ITR for AY 2025-26.
Please revise your tax return by 31st December to reflect these foreign assets/income. To do this, visit https://www.incometax.gov.in .Log in and navigate to “e-File” -> “Income Tax Return” -> “File Income Tax Return” -> Select Assessment Year 2025-26 ->click ““Start new filing”” -> Select the applicable status (individual/HUF/Others) -> Select the appropriate ITR form (other than ITR 1 or ITR 4).
A variation of this email or SMS goes like this:
Data has been shared by foreign jurisdiction(s) showing that you held or earned foreign assets or income (e.g., bank accounts, interest, dividends, investments) during Calendar Year 2024. However, Schedule Foreign Assets was not included in your ITR for Assessment Year 2025-26.
This message says that the income tax department has received information from foreign tax authorities, e.g. under FATCA (for USA) and CRS (for non-USA), that you have some kind of foreign asset, holding or income (like dividends) that you have not declared in your income tax return. Foreign brokerage and bank accounts require a tax identification number, which is PAN for Indians, to be provided when opening the account. This is how the account details and the activity get reported to the Indian Income Tax. There is no way to escape this.
If you have received this message, this is what you can do.
Whenever taxation is involved, it is normal to be cautious but not so much as to ignore a communication that might be legitimate.
Under Black Money Act, assessment proceedings might be initiated against you based on information received through international data-sharing agreements like FATCA and CRS
Instead of mentally debating what to do, here is a checklist to follow:
If the answer to any of these questions is Yes, then you have likely not declared them in Schedule FA of your FY2024-25 income tax return and therefore got this notification. If you have declared everything, you should still double-check the Schedule FA entry of your return.
If you have any income from a foreign source, you need to fill out Schedule FSI (regarding income from foreign sources) and Schedule TR (if you are seeking tax relief under DTAA).
Here is what the Income Tax department says about Schedule FA and revising ITR:
If you have received this email or SMS, do not ignore it. If none of the items in the checklist apply to you, please log in to the income tax portal and check if there is anything under Pending Actions in the income tax portal.
It is a good practice to immediately check if there are any Pending Actions in the income-tax portal:
If there is no Pending Action, check back in a few days.
If there is a Pending Action, please follow the instructions provided related to resolving the issue. This will start the processing steps for the Pending Action.
Log in to the Income Tax Portal. Check your filing under e-File > Income Tax Returns > View Filed Returns and check the return using the Download Form button.
As per Budget 2024, there will be no jail term if the total undeclared Foreign Assets is below ₹20 lakhs, only if that miss in declaration was unintentional. This limit was raised from ₹5 lakhs to ₹20 lakhs.
If the miss in filing Schedule FA is proved to be intentional, the consequences are severe:
Now that you know this, there is no real reason to skip filling out Schedule FA. There are a lot of YouTube videos on filling out Schedule FA correctly.
This official post from Income Tax has the right course of action to be taken here. You need to choose a different form: either ITR2 or something else.
ITR1 and ITR4 also do not have Schedule FSI and Schedule TR
If you have foreign assets and have not declared them, filing out Schedule FA and revising your ITR is the right course of action. When it comes to income tax, it is good to follow the rules and not tempt fate by thinking that the limits do not apply in your case. It is good to take help from a competent CA if there is any doubt or confusion.
It is a communication from the Indian Income Tax Department stating that it has received information from foreign tax authorities under CRS data-sharing agreement, indicating you held foreign assets or earned foreign income that was not reported in Schedule FA of your ITR.
It is a communication from the Indian Income Tax Department stating that it has received information from US tax authorities under FATCA data-sharing agreement, indicating you held foreign assets or earned foreign income that was not reported in Schedule FA of your ITR.
The email is sent from the Income Tax Department, typically from ITD_Support@insight.gov.in, and may also be accompanied by an SMS alert. Do not ignore it.
You likely received it because foreign authorities reported financial information linked to your PAN (such as foreign shares, bank accounts, or dividends), but your ITR for AY 2024-25 did not include Schedule FA.
Information such as foreign bank accounts, brokerage accounts, dividends, interest, RSUs, ESOPs, and other foreign assets or income is shared under international agreements like FATCA and CRS.
In most cases, it is legitimate. The Income Tax Department routinely receives data under FATCA and CRS and issues such communications when mismatches are detected.
FATCA (for the USA) and CRS (for non-USA countries) are international information-sharing frameworks through which foreign financial institutions report account and income details to Indian tax authorities.
Schedule FA is a mandatory section of the Indian income-tax return where residents must disclose details of foreign assets and foreign income held during the financial year.
Tax is to be paid on RSUs in India only if you sell them. Filling Schedule FA does not automatically trigger taxation
Yes. Foreign assets must be reported in Schedule FA regardless of whether tax was deducted abroad or whether DTAA benefits apply.
Foreign bank accounts, foreign shares, RSUs, ESOPs, dividends, interest, foreign pension accounts, foreign property, and assets held through foreign brokerages all require reporting.
Log in to the income tax portal, check for any Pending Actions, review your filed return, and verify whether Schedule FA was correctly filled.
Log in to the Income Tax Portal, go to e-File > Income Tax Returns > View Filed Returns, download the filed ITR, and review the Schedule FA section.
Ignoring it can lead to assessment proceedings under the Black Money Act based on information received from foreign authorities.
If intentional, penalties include a flat ₹10 lakh fine per year, 30% tax on undisclosed foreign income, loss of DTAA benefits, and possible prosecution with jail terms under the Black Money Act.
As per Budget 2024, no jail term applies if total undeclared foreign assets are below ₹20 lakhs and the non-disclosure was unintentional.
Yes. If you have undisclosed foreign assets or income, revising your ITR with a correctly filled Schedule FA before the 31st December deadline is the appropriate course of action.
The communication typically asks for revision by 31st December 2025 for Assessment Year 2025-26.
If there is any doubt or complexity, it is advisable to consult a competent Chartered Accountant to ensure accurate disclosure.
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This post titled What Should You Do If You Have Received the Income Tax Email Regarding Data Has Been Shared by a Foreign Jurisdiction or the USA authorities? first appeared on 18 Dec 2025 at https://arthgyaan.com
