Schedule FA reporting for jointly held foreign assets, with individual income below taxability threshold

Schedule FA reporting for jointly held foreign assets, with individual income below taxability threshold

Hi,

I need some guidance in filling in the Sch FA on my wife's ITR. We are planning to file a belated return for AY25-26.

Here’s my wife’s financial profile

1 Has a Fidelity brokerage account jointly held with myself (husband). All contributions to this account were made by myself.
2 Also, all the income arising out of such assets have been offered to tax by myself (husband), and details reported on my own Sch FA.
3 Some US bank accounts jointly held with myself. All interests from such account have also been offered to tax by myself (husband)
4 An individual foreign account yielding some dividend/interest.
5 Some individual domestic bank accounts yielding interests
7 Total income with interests and dividends combined from all sources (domestic and foreign)
NOT exceeding the taxability threshold. So, there's no NET tax liability on her part (afaik).

Question : Sch FA reporting.
As far as I know, my wife also needs to declare all the details of #1 above in Sch FA of her ITR.
However, I've come to know that no income arising out of #1 needs to be offered to tax, as I have already paid 100% of the taxes myself.

So, in order to avoid duplicated reporting and any potential confusion, how should #1 (Fidelity brokerage account) be reported on
Sch FA of my wife's ITR?

Following is my plan. Let me know if it looks correct.

a. A1 : Fill in the details on table A1

b. A2 : Fill in the details on table A2 (institutional details and account balances (peak and closing))

c. A3 : Fill in the item wise (per stock level) details leaving out the column on "Total gross
amount paid/credited with respect to the holding during the period" (As this income has been already offered to tax by myself).

Also, what about the last column in A3 where sale transactions ("Sales Proceeds or Redemption during the year") are reported?

Should this be left blank as well?

Asked 3 days ago in Income Tax

Your approach is mostly correct, with one important clarification:

A1 & A2 Tables: Fill Completely

Report full institutional details and account balances (peak and closing). This is mandatory for all joint owners, regardless of who earned the income.

A3 Income Column: Leave Blank/Zero

Since you've already reported and paid tax on 100% of the income, your wife should report zero in the "Total gross amount paid/credited" column to avoid duplicate reporting.

A3 Sale Proceeds Column: DO NOT Leave Blank

Report actual sale proceeds and redemption amounts. These are transaction records, not income. They must be disclosed regardless of income attribution. Sale proceeds represent factual capital movements, not income derived.

Key Point

Jointly held assets must be disclosed at full value by each owner in Schedule FA, but income is reported based on actual beneficial ownership. Your wife's disclosure of the asset is a compliance requirement under Section 139(1) and the Black Money Act, independent of income reporting.

Complete A1, A2, and A3 sale proceeds; leave income columns zero; add "jointly held with spouse" in remarks for clarity.

Shubham Goyal

CA, Delhi

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Talk to Shubham Goyal

Thanks for the detailed answer!

1. Beneficial owner vs owner

A2 : So, for the jointly held Fidelity account, I believe the ownership status should be set to "Beneficial Owner",
since my wife also has full right to ownership and operation on the account (It's basically a JTWROS (Joint Tenants With Right of Survivorship) account).
Is that correct?

A1 : Similarly for the jointly held bank accounts on table A1, I believe the status should be "Owner".

2. Where exactly should the "jointly held with spouse" note be added in remarks? Are you suggesting adding this comment to the income column (total gross amount paid) in the A3 table?

Asked 2 days ago

1. Beneficial Owner vs. Beneficiary (Crucial Correction)

Do NOT select "Beneficial Owner" for either account.

Why? Under the Black Money Act (which governs Schedule FA), a "Beneficial Owner" is defined strictly as the person who provided the consideration (funds).

Correct Selection: Select "Beneficiary" for both Table A1 and A2.
- Definition: A "Beneficiary" is someone who derives benefit from the asset but for whom the consideration was provided by another person (You).
- Impact: This status perfectly aligns with reporting Zero Income, as it signals to the tax department: "I hold this account, but I did not fund it, hence the income belongs to the funder."

2. Where to add the "Jointly Held" Note

Do NOT write anything in the Income/Amount columns.

The ITR utility validates numeric fields; adding text there will cause an error or invalid return.

Correct Location: Add the note in the "Name of Entity" text field.
- Example: Fidelity Brokerage (Joint A/c with Spouse - PAN: ABCDE1234F)

This ensures the explanation is visible on the face of the schedule without breaking the digital form structure.

Shubham Goyal

CA, Delhi

538 Answers

20 Consultations

Talk to Shubham Goyal

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