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Schedule FA · Form 67 · AY 2026-27
The RSUs you did not sell still go in the return
Vesting is taxed as salary and your employer usually handled it. What the Form 16 cannot do is disclose the shares you are still holding — and that obligation runs every year, in a schedule that ITR-1 does not have.
Three obligations, and they come apart
The mistake is treating this as one event. Vesting, holding and selling are taxed and reported separately, and the middle one has no tax attached at all — which is exactly why it gets missed.
When they vest
Taxed as salary, in the year of vesting, on the value at vesting. Your employer normally deducts tax and it reaches the return through Form 16, so this part usually looks after itself.
While you hold them
No tax. But if you are resident and ordinarily resident, the holding is disclosed in Schedule FA for every year you hold it. Nothing was sold, nothing was earned, and the disclosure is still required.
When you sell
A capital gain, computed in the ordinary way, plus any dividends received along the way. If the other country taxed either, the credit is claimed under Section 90, 90A or 91.
Schedule FA is wider than shares
Ten sub-tables, and an employee with a foreign brokerage account is usually in two of them without realising it.
| Table | What belongs in it |
|---|---|
| Foreign bank accounts | Any account held outside India |
| Custodial accounts | The brokerage account your RSUs vest into |
| Equity and debt interest | The shares themselves |
| Cash-value insurance | Policies with a surrender value |
| Financial interest in an entity | Beneficial ownership |
| Immovable property | Real estate abroad |
| Other capital assets | Including crypto on a foreign platform |
| Signing authority | An account you can operate but do not own |
| Foreign trusts | As settlor, trustee or beneficiary |
| Other foreign income | Anything from a source outside India |
Non-disclosure of a foreign asset is dealt with under the Black Money Act, 2015, separately from anything in the Income-tax Act. The obligation is not proportionate to the size of the holding, which is the part that surprises people about a single vested lot.
Form 67 comes before the return
A foreign tax credit under Section 90, 90A or 91 is supported by Form 67, furnished online at incometax.gov.in. Under Rule 128 it has to be filed on or before the due date u/s 139(1) for the credit to be admissible — 31 August 2026 for a non-audit case in AY 2026-27.
Filed after the return, or not at all, the credit can be denied even though the foreign tax was genuinely paid. BharatTax produces the Form 67 worksheet from the same figures the return uses; you furnish it on the portal, and you do that first.
The form you can no longer file
A foreign asset disqualifies ITR-1 and ITR-4 outright. It does not matter that the rest of the return is a single salary and a savings account, and it does not matter how small the holding is.
So a salaried employee whose company granted them one lot of shares is an ITR-2 filer from that year onward. The form chooser applies the same disqualification rules the product applies to your own answers.
Questions
I have RSUs from my employer. What do I report?
Do I have to file Schedule FA if I did not sell anything?
Where does an employee stock account go in Schedule FA?
I paid tax in the other country. Do I pay again here?
What is Form 67 and when is it due?
Which ITR form do I need?
Get the disclosure right, not just the tax
Schedule FA from your brokerage statement, the capital gain on what you sold, and the Form 67 worksheet for the tax the other country already took. Nothing is payable until you download the JSON to file with.